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9 Jun 2014
EUR/USD keeps falling, around 1.3620
FXStreet (Edinburgh) - The single currency is extending its intraday decline on Monday, pushing the EUR/USD to fresh 2-day lows around 1.3620.
EUR/USD softer post-Sentix
Lower investor confidence (8.5 act.) in the euro area coupled with a resurgence of risk aversion is weighing over the euro on Monday, as selling pressure is pushing spot to the lower band of today’s range at 1.3625/20. There are no further releases in the euro bloc and in the US, although traders would follow today’s speeches by Fed’s Bullard and Rosengren. In a longer term view, Technical Analyst Dmytro Bondar at RBS explained “the pair has been very technical with 3 textbook-perfect Head and Shoulders formed over 2010-2013. The 3rd pattern (H&S bottom - bullish) was formed over the period of Q1 2012 - Q4 2012. It has the measuring targets at 1.3870 and 1.4300. The 1st target has been met. The 2nd target is yet to be met, implying the EUR/USD would probably go to 1.4300 later this year – Q1 2015. Caveat to this would be a sustained break below 1.3500”.
EUR/USD levels to watch
As of writing the pair is down 0.12% at 1.3625 and a breakdown of 1.3621 (low Jun.6) would expose 1.3503 (low Jun.5) and then 1.3482 (low Feb.6). On the flip side, the initial hurdle aligns at 1.3688 (high May 22) ahead of 1.3723 (high May 21) and finally 1.3734 (high May 19).
EUR/USD softer post-Sentix
Lower investor confidence (8.5 act.) in the euro area coupled with a resurgence of risk aversion is weighing over the euro on Monday, as selling pressure is pushing spot to the lower band of today’s range at 1.3625/20. There are no further releases in the euro bloc and in the US, although traders would follow today’s speeches by Fed’s Bullard and Rosengren. In a longer term view, Technical Analyst Dmytro Bondar at RBS explained “the pair has been very technical with 3 textbook-perfect Head and Shoulders formed over 2010-2013. The 3rd pattern (H&S bottom - bullish) was formed over the period of Q1 2012 - Q4 2012. It has the measuring targets at 1.3870 and 1.4300. The 1st target has been met. The 2nd target is yet to be met, implying the EUR/USD would probably go to 1.4300 later this year – Q1 2015. Caveat to this would be a sustained break below 1.3500”.
EUR/USD levels to watch
As of writing the pair is down 0.12% at 1.3625 and a breakdown of 1.3621 (low Jun.6) would expose 1.3503 (low Jun.5) and then 1.3482 (low Feb.6). On the flip side, the initial hurdle aligns at 1.3688 (high May 22) ahead of 1.3723 (high May 21) and finally 1.3734 (high May 19).