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4 Nov 2013
EUR/USD breaks below the key 1.3489 support on Fed’s Fisher’s comments
FXstreet.com (Barcelona) - The hits just keep coming – in a negative way – for the EUR/USD as the Federal Reserve’s Richard Fisher was just out on the wires with what the market is reading as very hawkish comments.
Dollar strength – if the Fed tapers sooner than later – could spell more trouble for the EUR/USD
The EUR/USD cross is getting hammered once again Monday – breaking down below 1.3489 support - on headlines with hawkish comments from the US federal Reserve’s Richard Fisher. Phrases like “….resume “normal” policy as soon as possible” have thrown gasoline on the DXY-bullish fire that was already raging last week.
In addition to the additional DXY tailwind from Mr. Fisher, EUR/USD traders will be monitoring Monday’s scheduled releases: Manufacturing PMIs from all over Europe; EuroZone Investor Confidence; US ISM New York Index; US factory Orders; and, more Fed Heads making the rounds.
Technical outlook for EURUSD
As mentioned above, the technical crowd will be watching the close in EUR/USD to see if horizontal line support at 1.3489 is violated in earnest. Below 1,3489, the next support is the 8/20 close of 1.3417. Resistance for the cross comes in at the 10/3 high of 1.3645 and is backed up by horizontal line resistance at 1.37.
Dollar strength – if the Fed tapers sooner than later – could spell more trouble for the EUR/USD
The EUR/USD cross is getting hammered once again Monday – breaking down below 1.3489 support - on headlines with hawkish comments from the US federal Reserve’s Richard Fisher. Phrases like “….resume “normal” policy as soon as possible” have thrown gasoline on the DXY-bullish fire that was already raging last week.
In addition to the additional DXY tailwind from Mr. Fisher, EUR/USD traders will be monitoring Monday’s scheduled releases: Manufacturing PMIs from all over Europe; EuroZone Investor Confidence; US ISM New York Index; US factory Orders; and, more Fed Heads making the rounds.
Technical outlook for EURUSD
As mentioned above, the technical crowd will be watching the close in EUR/USD to see if horizontal line support at 1.3489 is violated in earnest. Below 1,3489, the next support is the 8/20 close of 1.3417. Resistance for the cross comes in at the 10/3 high of 1.3645 and is backed up by horizontal line resistance at 1.37.