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31 Aug 2015
EUR/USD: Break of 1.12 creates further downside risks - BBH
FXStreet (Bali) - According to BBH Global Currency Strategy Team, the The break of $1.12 in EUR/USD creates scope for another half cent of declines until 1.1130, where fresh fundamental catalyst are required.
Key Quotes
"The panic saw the euro reach almost $1.1715 at the start of last week. The subsequent sell-off saw it shed more than nickel."
"The euro settled on its lows for the week, leaving a potential shooting star candlestick formation on the weekly charts."
"The break of $1.12 creates scope for another half cent of declines. However, pushing the euro below the $1.1130 area may require fresh fundamental incentives, possibly in the form of more confidence that the Fed is still on track to hike rates next month, or that the ECB is particularly dovish."
"On the upside, the $1.1280-1.1310 band should limit euro gains if the euro bears who had been squeezed out of their shorts are going to re-establish."
Key Quotes
"The panic saw the euro reach almost $1.1715 at the start of last week. The subsequent sell-off saw it shed more than nickel."
"The euro settled on its lows for the week, leaving a potential shooting star candlestick formation on the weekly charts."
"The break of $1.12 creates scope for another half cent of declines. However, pushing the euro below the $1.1130 area may require fresh fundamental incentives, possibly in the form of more confidence that the Fed is still on track to hike rates next month, or that the ECB is particularly dovish."
"On the upside, the $1.1280-1.1310 band should limit euro gains if the euro bears who had been squeezed out of their shorts are going to re-establish."