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12 Jun 2013
EUR/USD in lows around 1.3280
FXstreet.com (Barcelona) - After hitting highs not seen since late February around 1.3335/40, the EUR/USD retreated to the opposite side of the range, posting fresh intraday lows in sub 1.3280 levels.
Positioning, euro-yields would weigh on EUR/USD
According to Jane Foley, Strategist at Rabobank, the recent weakness surrounding the greenback was mainly due to the extreme long USD positioning seen in the last weekly reports, against the backdrop of rising rumours about the Fed and the likeliness of scaling back its monthly bond purchases. “Peripheral bond yields have risen since their lows at the start of May. Yields will remain a key barometer of investor confidence in EMU and given the continued vulnerabilities of the Eurozone, there is still a strong risk of EUR/USD retreating to the 1.28 level in a 3 mth view”, concluded Foley.
EUR/USD key levels
At the moment, the pair is losing 0.20% at 1.3286 and a breakdown of 1.3177 (low Jun.10) would target 1.3162 (MA10d) en route to 1.3103 (MA100d). On the upside, resistance levels align at 1.3340 (61.8% of Feb-Apr slide) ahead of 1.3456 (high Feb.14) and finally 1.3520 (high Feb.13).
Positioning, euro-yields would weigh on EUR/USD
According to Jane Foley, Strategist at Rabobank, the recent weakness surrounding the greenback was mainly due to the extreme long USD positioning seen in the last weekly reports, against the backdrop of rising rumours about the Fed and the likeliness of scaling back its monthly bond purchases. “Peripheral bond yields have risen since their lows at the start of May. Yields will remain a key barometer of investor confidence in EMU and given the continued vulnerabilities of the Eurozone, there is still a strong risk of EUR/USD retreating to the 1.28 level in a 3 mth view”, concluded Foley.
EUR/USD key levels
At the moment, the pair is losing 0.20% at 1.3286 and a breakdown of 1.3177 (low Jun.10) would target 1.3162 (MA10d) en route to 1.3103 (MA100d). On the upside, resistance levels align at 1.3340 (61.8% of Feb-Apr slide) ahead of 1.3456 (high Feb.14) and finally 1.3520 (high Feb.13).