Empty docket in Euroland on Friday will leave all the attention to the Jackson Hole Symposium and the speeches by Chairwoman Yellen and ECB’s Draghi. After hitting multi-month lows around 1.3250, spot is looking to somehow reverse the current deep pullback although the sentiment surrounding the EUR remains tilted to the downside. In the view of Quek Ser Leang, Market Strategist at UOB Group, “the downside extension target highlighted at 1.3240 was met yesterday. The rebound suggests that we have likely seen a temporary low and EUR is expected to trade sideways from here. Allow the current recovery to extend towards 1.3310 but this should lead to a pullback to 1.3250 for an overall consolidation phase”.
EUR/USD key levels
The pair is now flat at 1.3281 with the next resistance at 1.3297 (high Aug.22) followed by 1.3324 (high Aug.20) and finally 1.3364 (high Aug.19). On the downside, a breach of 1.3242 (low Aug.21) would expose 1.3230 (low Sep.10 2013) and then 1.3157 (low Sep.9 2013).
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