EUR/USD at the mercy of the Central Banks

By FXstreet.com | June 11, 2014 AAA

FXStreet (Guatemala) - EUR/USD is trading at 1.3538, down -0.07% on the day, having posted a daily high at 1.3558 and low at 1.3521.

EUR/USD is extending the sideways channel after the drop that came at the end of last weeks trading and continued into this week while markets are weighing up the order of events to come from the Central banks. Jane Foley, Senior Currency Strategist at Rabobank, explained that they have argued for some time that the ECB remains in the shadow of the Fed. “Despite maintaining an extremely dovish position for a prolonged period EUR/USD has retained a firm position. While the strong movement back into peripheral assets can be associated with EUR strength since the end of 2012, the persistent weak tone of the USD has kept EUR/USD well supported”. She added, “How quickly EUR/USD can fall greatly depend on the Fed. Our 12 mth target lies at EUR/USD 1.30”.

EUR/USD Levels

Spot is presently trading at 1.3538, and next resistance can be seen at 1.3541 (Hourly 20 EMA), 1.3547 (Monthly Low), 1.3547 (Weekly Low), 1.3547 (Daily Open) and 1.3558 (Daily High). Support below can be found at 1.3537 (Weekly Classic S1), 1.3533 (Yesterday's Low), 1.3521 (Daily Low), 1.3518 (Daily Classic S1) and 1.3490 (Daily Classic S2).

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