Forex Flash: EUR/USD over 1.3000 should be taken as opportunity to sell - BTMU
Forex pairs in this Article »
EUR/USD
FXstreet.com (San Francisco) - The Euro recovery against the US Dollar has been strongly rejected at the 1.3010, Nov high, with the EURUSD falling fast to 1.2965 on the back of cocktail of developments. Currently the pair is at 1.2980.
First a well above consensus Pending Home Sales in October that spurs fears on QE suspension. Second the Democratic leader Chris Van Holland saying that the two sides are not close to a deal on the fiscal cliff. And third a very well anticipated sell interest just above the 1.3000 mark. This cocktail was used to launch the pair around 45 pips down where the EURUSD found support.
But according to the Bank of Tokyo-Mitsubishi UFJ's European Head of Global Research Derek Halpenny, the EURUSD "will continue to be contained by the belief that the Fed will maintain an ultra-loose monetary stance."
In a recent note, Halpenny pointed that "operation twist ends next month but may be replaced by balance sheet expansion while Chicago Fed President Evans today cited an unemployment rate of 6.5% as the level to reach before the Fed considers rate increases."
BTMU expert believes that a "pop higher in EURUSD over 1.3000 that looks imminent should be taken as a good opportunity to sell" as far as "the downward trend in EURUSD still intact."
First a well above consensus Pending Home Sales in October that spurs fears on QE suspension. Second the Democratic leader Chris Van Holland saying that the two sides are not close to a deal on the fiscal cliff. And third a very well anticipated sell interest just above the 1.3000 mark. This cocktail was used to launch the pair around 45 pips down where the EURUSD found support.
But according to the Bank of Tokyo-Mitsubishi UFJ's European Head of Global Research Derek Halpenny, the EURUSD "will continue to be contained by the belief that the Fed will maintain an ultra-loose monetary stance."
In a recent note, Halpenny pointed that "operation twist ends next month but may be replaced by balance sheet expansion while Chicago Fed President Evans today cited an unemployment rate of 6.5% as the level to reach before the Fed considers rate increases."
BTMU expert believes that a "pop higher in EURUSD over 1.3000 that looks imminent should be taken as a good opportunity to sell" as far as "the downward trend in EURUSD still intact."
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