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7 Oct 2013
Flash: EUR/USD, risk of a deeper near-term pullback - BBH
FXstreet.com (Barcelona) - EUR/USD failed to sustain recent gains on Friday, and after reaching an 8-month high of 1.3645 on Thursday, the pair saw a sharp pullback the next day, taking the exchange rate towards 1.3550, with risks now increasing for a deeper near-term retracement, according to Marc Chandler, Global Head of Currency Strategy at BBH.
Key Quotes
"While we do not want to read too much into the pullback ahead of the weekend, daily technical indicators such as the RSI and MACDs, are looking a bit stretched."
"It appears to be warning of the risk of a deeper near-term pullback. Initial support is seen near $1.3500. It may take a break of the post-FOMC low near $1.3460 to boost confidence that a high is indeed in place."
Key Quotes
"While we do not want to read too much into the pullback ahead of the weekend, daily technical indicators such as the RSI and MACDs, are looking a bit stretched."
"It appears to be warning of the risk of a deeper near-term pullback. Initial support is seen near $1.3500. It may take a break of the post-FOMC low near $1.3460 to boost confidence that a high is indeed in place."