12 Jan 2015
EUR/USD might test decade lows at 1.1640 – MP
FXStreet (Barcelona) - According to Dean Popplewell, Director of Currency Analysis at MarketPulse, the EUR/USD pair might make a move lower towards 1.1640 levels on a break below its last week’s low at 1.1754/62, with the pair struggling to break above the 1.19 handle in the Asian trade.
Key Quotes
“The “mighty” dollar remains the dominant currency across the boards. There are many positives supporting it whether it’s U.S. growth, rate divergence, an upbeat Federal Reserve or jobs, are all making U.S. assets attractive and a rising U.S. dollar adds to that appeal. It seems that the market consensus believes that we are in the early stages of a secular bull market for the U.S. dollar.”
“Nevertheless, Friday’s U.S payrolls saw some dollar profit taking outright. The EUR stood firm below €1.1790 and closed out the weekend with a bid tone (€1.1847).”
“The 19-member single unit failed in its attempt, during the overnight Asian session, to take on the plethora of stop-losses located around the €1.19 handle. This forced the weaker Asian longs to exit their EUR’s after this failed attempt.”
“Europe has since applied further pressure on its own currency, opening up the way for the market to once again test last week’s low €1.1754/62 lows. The strong decline from the overnight session high technically keeps the €1.1885 resistance protected.”
“A break through the lows with some momentum certainly opens the gates for the market to test its decade lows at €1.1640. Expect the market to reassess their options once there.”
Key Quotes
“The “mighty” dollar remains the dominant currency across the boards. There are many positives supporting it whether it’s U.S. growth, rate divergence, an upbeat Federal Reserve or jobs, are all making U.S. assets attractive and a rising U.S. dollar adds to that appeal. It seems that the market consensus believes that we are in the early stages of a secular bull market for the U.S. dollar.”
“Nevertheless, Friday’s U.S payrolls saw some dollar profit taking outright. The EUR stood firm below €1.1790 and closed out the weekend with a bid tone (€1.1847).”
“The 19-member single unit failed in its attempt, during the overnight Asian session, to take on the plethora of stop-losses located around the €1.19 handle. This forced the weaker Asian longs to exit their EUR’s after this failed attempt.”
“Europe has since applied further pressure on its own currency, opening up the way for the market to once again test last week’s low €1.1754/62 lows. The strong decline from the overnight session high technically keeps the €1.1885 resistance protected.”
“A break through the lows with some momentum certainly opens the gates for the market to test its decade lows at €1.1640. Expect the market to reassess their options once there.”