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20 Mar 2014
EUR/USD stabilizes below 1.3835 after sharp decline
FXStreet (Córdoba) - After bottoming at 1.3810 the EUR/USD rebounded, but the recovery was capped by 1.3835. Early in Asia trades around 1.3820/25, near Wednesday’s lows.
The FOMC decision to cut the asset purchase program by another $10 billion boosted the US dollar across the board pushing the EUR/USD to fall from 1.3915 to 1.3809, reaching the lowest price since March 6. The pair had the worst day since October. The Euro posted the lowest daily close since in two week versus the US dollar.
EUR/USD and the importance of 1.3800
The decline broke important short-term support levels and stabilized above 1.3800. Despite finding support the EUR/USD still faces some bearish pressure as the US dollar remains strong in the market.
“If stops below the 1.3800 figure get triggered, the pair may extend its slide towards 1.3740/60 area over the upcoming 24 hours, yet if the level holds, the pair may try to regain at least partially the ground lost”, said Valeria Bednarik, Chief Analyst at FXStreet.
The FOMC decision to cut the asset purchase program by another $10 billion boosted the US dollar across the board pushing the EUR/USD to fall from 1.3915 to 1.3809, reaching the lowest price since March 6. The pair had the worst day since October. The Euro posted the lowest daily close since in two week versus the US dollar.
EUR/USD and the importance of 1.3800
The decline broke important short-term support levels and stabilized above 1.3800. Despite finding support the EUR/USD still faces some bearish pressure as the US dollar remains strong in the market.
“If stops below the 1.3800 figure get triggered, the pair may extend its slide towards 1.3740/60 area over the upcoming 24 hours, yet if the level holds, the pair may try to regain at least partially the ground lost”, said Valeria Bednarik, Chief Analyst at FXStreet.