Back
20 Mar 2014
EUR/USD keeps falling, eyes on 1.3750
FXStreet (Edinburgh) - The shared currency is extending its selling mood on Thursday, pushing the EUR/USD deeper to the vicinity of 1.3750.
EUR/USD in 2-week lows
The pair is still suffering the hawkish tone from yesterday’s FOMC meeting and subsequent press conference by Chairwoman J.Yellen, trading back to the mid-1.37s, last seen in early March. The research team at BBH assessed, “The market focused on two elements… First, Fed funds at the end of next year are now seen at 1.0... Second, the FOMC said that there would be a "considerable period" between the completion of the asset purchases and the first increase in rates. We would file this phraseology under "strategic ambiguity”. However, when pressed, Yellen opined that a "considerable period" could be around six months.
EUR/USD relevant levels
The pair is now retreating 0.49% at 1.3764 and a breakdown of 1.3720 (low Mar.6) would aim for 1.3707 (low ar.5) and finally 1.3694 (low Feb.28). On the flip side, the initial resistance aligns at 1.3845 (high Mar.20) ahead of 1.3882 (10-d MA) and then 1.3935 (high Mar.19).
EUR/USD in 2-week lows
The pair is still suffering the hawkish tone from yesterday’s FOMC meeting and subsequent press conference by Chairwoman J.Yellen, trading back to the mid-1.37s, last seen in early March. The research team at BBH assessed, “The market focused on two elements… First, Fed funds at the end of next year are now seen at 1.0... Second, the FOMC said that there would be a "considerable period" between the completion of the asset purchases and the first increase in rates. We would file this phraseology under "strategic ambiguity”. However, when pressed, Yellen opined that a "considerable period" could be around six months.
EUR/USD relevant levels
The pair is now retreating 0.49% at 1.3764 and a breakdown of 1.3720 (low Mar.6) would aim for 1.3707 (low ar.5) and finally 1.3694 (low Feb.28). On the flip side, the initial resistance aligns at 1.3845 (high Mar.20) ahead of 1.3882 (10-d MA) and then 1.3935 (high Mar.19).