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13 Mar 2015
EUR/USD bearish for 1.0335 – GrowthAces
FXStreet (Barcelona) - The GrowthAces Research Team gives the trade strategy and key levels for EUR/USD, maintaining a bearish stance in lieu of next week’s FOMC meeting.
Key Quotes
“The EUR/USD sentiment looks to remain decidedly bearish with calls for parity in the medium term.”
“The Fed is likely to signal its intention to raise interest rates soon by dropping a pledge to be "patient" in its forward guidance at next week's policy meeting. The market expects the Fed to raise interest rates in June as a rapidly strengthening labor market and its eventual upward pressure on wages offsets lingering concerns about low inflation.”
“However, further appreciation of the USD may be a barrier to further economic recovery in the USA and may cause a delay in raising rates.”
“Fed Chair Janet Yellen said last month that the policy-setting committee "needs to be reasonably confident that over the medium term, inflation will move up toward its 2% objective" before it starts to raise interest rates.”
“Significant technical analysis' levels:
Resistance: 1.0634 (session high Mar 13), 1.0684 (high Mar 12), 1.0718 (high Mar 11)
Support: 1.0494 (low Mar 12), 1.0460 (low Jan 9, 2003), 1.0335 (monthly low Jan 2003)”
“EUR/USD: short at 1.0625, target 1.0335, stop-loss 1.0710, risk factor **”
Key Quotes
“The EUR/USD sentiment looks to remain decidedly bearish with calls for parity in the medium term.”
“The Fed is likely to signal its intention to raise interest rates soon by dropping a pledge to be "patient" in its forward guidance at next week's policy meeting. The market expects the Fed to raise interest rates in June as a rapidly strengthening labor market and its eventual upward pressure on wages offsets lingering concerns about low inflation.”
“However, further appreciation of the USD may be a barrier to further economic recovery in the USA and may cause a delay in raising rates.”
“Fed Chair Janet Yellen said last month that the policy-setting committee "needs to be reasonably confident that over the medium term, inflation will move up toward its 2% objective" before it starts to raise interest rates.”
“Significant technical analysis' levels:
Resistance: 1.0634 (session high Mar 13), 1.0684 (high Mar 12), 1.0718 (high Mar 11)
Support: 1.0494 (low Mar 12), 1.0460 (low Jan 9, 2003), 1.0335 (monthly low Jan 2003)”
“EUR/USD: short at 1.0625, target 1.0335, stop-loss 1.0710, risk factor **”