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18 Sep 2014
EUR/USD recovery finds resistance at 1.2930
FXStreet (Córdoba) - The recovery of the euro from 14 month lows found resistance at 1.2930 during the American session. During the last hours EUR/USD has been moving sideways, consolidating gains, trading in a range between 1.2930 and 1.2905.
The pair is still trading below the level it had before the release of the FOMC statement but far from the lows; EUR/USD bottomed at 1.2833 earlier reaching the lowest price since 2013.
EUR/USD outlook
Despite today’s bullish correction the dominant trend is still bearish. “The latest developments support our outlook for a stronger US dollar going forward”, said Derek Halpenny, strategist at The Bank of Tokyo-Mitsubishi UFJ.
“We stick to our updated EUR/USD forecast of 1.2700 by the end of the year, while acknowledging downside risks to that level”, added Halpenny that noted that the DXY index is up 6% since late June and some anticipation of rising government bond yields may be priced in.
The pair is still trading below the level it had before the release of the FOMC statement but far from the lows; EUR/USD bottomed at 1.2833 earlier reaching the lowest price since 2013.
EUR/USD outlook
Despite today’s bullish correction the dominant trend is still bearish. “The latest developments support our outlook for a stronger US dollar going forward”, said Derek Halpenny, strategist at The Bank of Tokyo-Mitsubishi UFJ.
“We stick to our updated EUR/USD forecast of 1.2700 by the end of the year, while acknowledging downside risks to that level”, added Halpenny that noted that the DXY index is up 6% since late June and some anticipation of rising government bond yields may be priced in.