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31 Oct 2013
Flash: EUR/USD: A break below 1.3600 would confirm negative bias - BBH
FXstreet.com (Córdoba) - The USD strengthened broadly after the Fed statement came in less dovish than expected Wednesday. However, the BBH analyst team noted that despite the knee-jerk positive reaction, the FOMC decision to keep policy steady yesterday should eventually bring back into focus the major negative factor for the dollar.
Key quotes
"For EUR/USD, we think a break of $1.36 (62% retracement of the October 16-25 rise for EUR) is needed to suggest that this is anything more than a corrective dollar bounce".
"On the other hand, cable is leading the move and has already broken the 62% objective from its October rise near $1.6035, which targets the Oct 16 low near $1.5900. Support near $1.6000 is holding for now".
"The euro will have trouble gaining much traction if sterling is still weakening".
Key quotes
"For EUR/USD, we think a break of $1.36 (62% retracement of the October 16-25 rise for EUR) is needed to suggest that this is anything more than a corrective dollar bounce".
"On the other hand, cable is leading the move and has already broken the 62% objective from its October rise near $1.6035, which targets the Oct 16 low near $1.5900. Support near $1.6000 is holding for now".
"The euro will have trouble gaining much traction if sterling is still weakening".