Back
20 Oct 2013
Flash: EUR/USD, look for a pullback into $1.3590-$1.3615 to buy - BBH
FXstreet.com (Barcelona) - After the strong upward run in EUR/USD late last week, one that has put the 1.3711 year-high into focus, the next target for buyers, should the level be breached, is near $1.40, notes Marc Chandler, Head of FX Strategy at BBH.
Key Quotes
"The main caveat from our technical analysis is that the euro closed above the top of its Bollinger Band (two standard deviations above the 20-day moving average) two consecutive sessions at the end of last week. "
"Even though the returns in the foreign exchange market are not normally distributed, arguably undermining the value of such concepts as standard deviations in the first, it is still a rare occurrence."
"It did take place this year in June and September and although neither time marked a significant high, there was at least a cent pullback. This would seem to argue against chasing the euro at the start of the week and look for a pullback into the $1.3590-$1.3615 area as a lower risk buying opportunity."
Key Quotes
"The main caveat from our technical analysis is that the euro closed above the top of its Bollinger Band (two standard deviations above the 20-day moving average) two consecutive sessions at the end of last week. "
"Even though the returns in the foreign exchange market are not normally distributed, arguably undermining the value of such concepts as standard deviations in the first, it is still a rare occurrence."
"It did take place this year in June and September and although neither time marked a significant high, there was at least a cent pullback. This would seem to argue against chasing the euro at the start of the week and look for a pullback into the $1.3590-$1.3615 area as a lower risk buying opportunity."