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15 May 2013
Forex: EUR/USD keeps… falling!
FXstreet.com (Barcelona) - The USD seems unstoppable so far, dragging the cross to the vicinity of 1.2850 on Wednesday as the FX markets continue to favour the risk-off trade.
“Our base case is for this trend in the EUR to continue but at a measured pace, particularly in light of the fact that yield-seeking bids in the currency are likely to persist despite the macro economic downside risks the Eurosystem is still facing”, commented Stephen Gallo, Strategist at BMO.
The cross is now retreating 0.45% at 1.2862 and a violation of 1.2747 (low Apr.4) would expose 1.2679 (61.8% of 1.2042-1.3711) and finally 1.2662 (low Nov.13).
On the flip side, the next hurdle is located at 1.2943 (high May 15) ahead of 1.3030 (high May 14) and then 1.3048 (MA21d).
“Our base case is for this trend in the EUR to continue but at a measured pace, particularly in light of the fact that yield-seeking bids in the currency are likely to persist despite the macro economic downside risks the Eurosystem is still facing”, commented Stephen Gallo, Strategist at BMO.
The cross is now retreating 0.45% at 1.2862 and a violation of 1.2747 (low Apr.4) would expose 1.2679 (61.8% of 1.2042-1.3711) and finally 1.2662 (low Nov.13).
On the flip side, the next hurdle is located at 1.2943 (high May 15) ahead of 1.3030 (high May 14) and then 1.3048 (MA21d).