22 Jul 2014
EUR/USD: Break below 1.3450 needed to accelerate losses - Westpac
FXStreet (Bali) - Westpac FX Team notes that a break of 1.3450 in EUR/USD could allow the next down leg into the low 1.30’s.
Key Quotes
"The speed with which EUR/USD has fallen from above 1.36 to the low 1.35s suggests a low level of market confidence on Europe."
"The recent run of soft data will not have helped (our Eurozone data pulse index sank to 36.7% last week, a low since May 2013) and the first of the TLTROs in Sep is now not that far away."
"A break of 1.3450 would suggest this next down leg could take EUR into the low 1.30’s."
"Positioning should slow the decline though, with IMM specs holding the largest shorts in 14 months (though not at all extreme)."
Key Quotes
"The speed with which EUR/USD has fallen from above 1.36 to the low 1.35s suggests a low level of market confidence on Europe."
"The recent run of soft data will not have helped (our Eurozone data pulse index sank to 36.7% last week, a low since May 2013) and the first of the TLTROs in Sep is now not that far away."
"A break of 1.3450 would suggest this next down leg could take EUR into the low 1.30’s."
"Positioning should slow the decline though, with IMM specs holding the largest shorts in 14 months (though not at all extreme)."