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11 Feb 2013
Forex: EUR/USD back to the area around 1.3375/80
After a failed attempt to follow through the key resistance at 1.3400, the single currency lost impetus and is trading back to the 1.3370/75 region on Monday, following the increasing risk aversion.
Analyst M.Mohi-ddin at UBS highlights the difficult political scenario lying ahead of the euro, arguing “Combined with Spanish Prime Minister Rajoy facing corruption allegations over political party funds and former Italian Prime Minister Berlusconi surging in the polls before elections on February 24-25, the euro is likely to trade in a 1.30-1.37 range over the next few months rather than trending higher towards 1.40 against the US dollar”.
As of writing, the cross is up 0.10% at 1.3382 facing the next hurdle at 1.3426 (MA21d) ahead of 1.3430 (high Feb.8) and finally 1.3462 (low Feb.5).
On the downside, a dip beyond 1.3326 (hourly low Feb.11) would aim for 1.3265 (low Jan.23) en route to 1.3216 (Lower Bollinger).
Analyst M.Mohi-ddin at UBS highlights the difficult political scenario lying ahead of the euro, arguing “Combined with Spanish Prime Minister Rajoy facing corruption allegations over political party funds and former Italian Prime Minister Berlusconi surging in the polls before elections on February 24-25, the euro is likely to trade in a 1.30-1.37 range over the next few months rather than trending higher towards 1.40 against the US dollar”.
As of writing, the cross is up 0.10% at 1.3382 facing the next hurdle at 1.3426 (MA21d) ahead of 1.3430 (high Feb.8) and finally 1.3462 (low Feb.5).
On the downside, a dip beyond 1.3326 (hourly low Feb.11) would aim for 1.3265 (low Jan.23) en route to 1.3216 (Lower Bollinger).