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21 Apr 2014
EUR/USD breaks below 1.3800
FXStreet (Edinburgh) - Selling pressure is building up around the euro on Monday, now dragging the EUR/USD to sub-1.3800 levels.
EUR/USD in 4-day lows
Spot is now putting the 1.3800 handle to the test, extending the correction lower from last week’s tops just beyond 1.3900 the figure. The pair reverted a promising start overnight, although the bull intent run out of legs in the orbit of 1.3830. “Last week, the euro established a base just above $1.3780, which corresponds to a 20-day moving average… The wider range is around a cent larger in both directions--$1.3680-$1.40. Continued range trading is consistent with lower implied volatility, which around 6% is back to pre-crisis levels. Low volatility also encourages greater risk taking”, observed analysts at BBH Global Currency Strategy Team.
EUR/USD levels to watch
The pair is now retreating 0.09% at 1.3796 with the next support at 1.3793 (21-d MA) followed by 1.3790 (low Apr.15) and finally 1.3780 (low Apr.9). On the flip side, a breakout of 1.3830 (high Apr.21) would aim for 1.3865 (high Apr.17) and then 1.3906 (high Apr.11).
EUR/USD in 4-day lows
Spot is now putting the 1.3800 handle to the test, extending the correction lower from last week’s tops just beyond 1.3900 the figure. The pair reverted a promising start overnight, although the bull intent run out of legs in the orbit of 1.3830. “Last week, the euro established a base just above $1.3780, which corresponds to a 20-day moving average… The wider range is around a cent larger in both directions--$1.3680-$1.40. Continued range trading is consistent with lower implied volatility, which around 6% is back to pre-crisis levels. Low volatility also encourages greater risk taking”, observed analysts at BBH Global Currency Strategy Team.
EUR/USD levels to watch
The pair is now retreating 0.09% at 1.3796 with the next support at 1.3793 (21-d MA) followed by 1.3790 (low Apr.15) and finally 1.3780 (low Apr.9). On the flip side, a breakout of 1.3830 (high Apr.21) would aim for 1.3865 (high Apr.17) and then 1.3906 (high Apr.11).