Westpac: EUR/USD under bearish pressure
EUR/USD has almost reached $1.3550 today, but then fell back to $1.3520. Barclays expect the bearish pressure on $1.3475/1.3500 to continue. The outlook will remain negative as long as the pair’s trading below $1.3575. The next support is at $1.3325 (100-week MA and weekly Cloud base).
According to Westpac, the fact that euro fell from the levels above $1.3600 to the low 1.35s so rapidly means that the level of confidence in it is low. There was a bunch of negative economic data out of the euro area. In addition, the first of the ECB’s TLTROs in September is getting closer. Westpac analysts think that in case of the break below $1.3450 EUR/USD will fall to the low 1.30s noting that this decline would be slower as the market has heavy euro shorts now.
График. Daily EUR/USD