EUR/USD to trend lower medium term

By FXstreet.com | August 15, 2014 AAA

FXStreet (Guatemala) - EUR/USD is trading at 1.3386, up 0.16% on the day, having posted a daily high at 1.3412 and low at 1.3359.



The EUR has been one of the poorest performing developed world currencies over the past month as analysts at Rabobank note, as fears of continuing weak growth in the Eurozone emphasises the ECB’s threat of further monetary policy accommodation. “While we expect EUR/USD to trend lower medium-term, we still expect the pace of USD gains to be moderate and constrained by a dovish FOMC. That said, in recognition of the USD’s recent strength we have revised down our 12 month forecast for EUR/USD to 1.28 from 1.30”.



EUR/USD hourly levels



Spot is presently trading at 1.3386, and next resistance can be seen at 1.3392 (Weekly Classic PP), 1.3399 (Daily Classic R1), 1.3409 (Yesterday's High), and 1.3412 (Daily High). Next support to the downside can be found at 1.3378 (Hourly 20 EMA), 1.3374 (Hourly 200 SMA), 1.3369 (Hourly 100 SMA) and 1.3365 (Weekly Low).



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