EUR/USD remains under pressure
EUR/USD remains under pressure and is testing new lows below $1.3420 trying to erode the 200-week MA.
Analysts at BMO point out that EUR/USD is capped by $1.3450 ahead of the release of the US GDP and the results of the Fed’s meeting all due tomorrow. Mizuho Bank underlines that the market is now the most bearish on euro since late November 2012 and American economy needs to do well in order for such euro-selling sentiment to persist: “If bets accumulate too much in that direction though, you do have to be wary about the possibility of a sudden reversal.”
Chart. Daily EUR/USD
Commerzbank says that the outlook for EUR/USD will remain negative as long as it’s trading below the downtrend line at $1.3565. The specialists say that a close below $1.3385 (55-month MA and the bottom of the monthly Cloud) will trigger further selling with targets at $1.3295 (November 2013 low) and $1.3020/00 (50% Fibo of the advance from 2012 low). If the bulls somehow manage to overcome $1.3565, the pair will make a deeper retracement to $1.3665/1.3700.
Chart. Monthly EUR/USD