EUR/USD downside limited? – Westpac

By FXstreet.com | Updated August 21, 2014 AAA

FXStreet (Edinburgh) - Strategists at Westpac Global Strategy Group see a test of the 1.3200 handle as unlikely in the very near term.



Key Quotes



“After more than 2 weeks of congestion with a 1.33 handle, EUR/USD has broken lower and could be ontrack for substantial further decline”.



“However, with spec positioning already heavily short, it is hard to make the case that a 1.32 handle is attractive for fresh positions”.



“The week ahead should tend mildly negative for EUR/USD but is overshadowed by the early Sep data flurry so while retaining a downward bias on the week, we suspect new lows will only be marginal”.



Related Forex Analysis
  1. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

  2. Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar
    Forex News

    Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar

  3. Strategy Video: A Volatile Thanksgiving Week for FX?
    Forex News

    Strategy Video: A Volatile Thanksgiving Week for FX?

  4. US Session: The market left shell-shocked on Draghi
    Forex News

    US Session: The market left shell-shocked on Draghi

  5. EUR/USD back into the bears den, downside wide open
    Forex News

    EUR/USD back into the bears den, downside wide open

Trading Center