13 Sep 2013
Flash: EUR/USD overvalued – BTMU
FXstreet.com (London) - Lee Hardman made comments with reference to the position of the EUR/USD, suggesting that the euro is overvalued.
Key Quotes:
“The euro continues to remain largely directionless against the US dollar, with EUR/USD having traded within a tight range between roughly 1.28 and 1.35 for most of the last year”.
“The pair has derived technical support from its 50-week moving average and resistance from its 200-week moving average throughout this period, which are currently located at 1.3120 and 1.3365 respectively”.
“As a result EUR/USD volatility has trended modestly lower over the past year”.
“Our short-term valuation model currently estimates that EUR/USD is only modestly overvalued based upon the main economic fundamental drivers for the pair”.
Key Quotes:
“The euro continues to remain largely directionless against the US dollar, with EUR/USD having traded within a tight range between roughly 1.28 and 1.35 for most of the last year”.
“The pair has derived technical support from its 50-week moving average and resistance from its 200-week moving average throughout this period, which are currently located at 1.3120 and 1.3365 respectively”.
“As a result EUR/USD volatility has trended modestly lower over the past year”.
“Our short-term valuation model currently estimates that EUR/USD is only modestly overvalued based upon the main economic fundamental drivers for the pair”.