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17 Oct 2013
EUR/USD range bound or YTD high on the cards?
FXstreet.com (London) - EUR/USD has stalled and its high comes as 1.3683 while the pair has started to drift lower stalling on 1.3660.
The agreement on the debt ceiling itself was better news for now but it is just looking like a short term fix. The dollar has been dumped in the likely negative implications for a slower recovery in the US, with softening data and a dovish tone from the Fed tapering is likely to be on the shelf. There are two likely scenarios for the EUR/USD now which are to either stay pined to the 1.3450/1.3650 range or we gradually push up beyond the high of 1.3711, unless of course we see an unexpected deterioration in EZ data and more aggressive speculation of a rate cut; 1.3450 offers as a strong support level.
EUR/USD Levels
Momentum has slowed and here any upside is likely to be slow progress while there is risk of a verbal push back from ECB officials; last weeks high ha been breached at1.3607 and too the cycle high at 1.3646 which opens the years 1.3711 summit.
The agreement on the debt ceiling itself was better news for now but it is just looking like a short term fix. The dollar has been dumped in the likely negative implications for a slower recovery in the US, with softening data and a dovish tone from the Fed tapering is likely to be on the shelf. There are two likely scenarios for the EUR/USD now which are to either stay pined to the 1.3450/1.3650 range or we gradually push up beyond the high of 1.3711, unless of course we see an unexpected deterioration in EZ data and more aggressive speculation of a rate cut; 1.3450 offers as a strong support level.
EUR/USD Levels
Momentum has slowed and here any upside is likely to be slow progress while there is risk of a verbal push back from ECB officials; last weeks high ha been breached at1.3607 and too the cycle high at 1.3646 which opens the years 1.3711 summit.