Forex Analysis : EUR/USD
Last week we said of the EUR, a best case should be a spike to 1.4100-1.4200 or so over the near term
• The Euro could easily go to 1.44-1.45 or so if the ECB really do raise interest rates in coming weeks, but if it’s all just another case of much talk and plenty of inaction, the end result could be a swift reversal and plunge of some magnitude.
• We view 1.4060-1.4080 as quite a strong initial barrier for early in the week, but if it is cleared the Euro could go on a tear, with a subsequent move to 1.4150-1.4190
• However, should the week begin with a spot of USD strength, EURUSD has first support at 1.3924, and if taken out it should come off to the 1.3820-1.3850 range quite quickly.
• Lower and indeed stronger support is seen from 1.3700 to 1.3750