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Oct 18 - 07:55 AM

EUR/USD - COMMENT-The Lack Of Action Should Concern EUR/USD Traders

By Jeremy Boulton  —  Oct 18 - 05:36 AM

EUR/USD traders who have grown more bearish since the Federal Reserve's hawkish musings in June need to be cautious, as the lack of follow-through to a supposed big downside break suggests hopes for a bigger drop should be tempered.

At the end of September EUR/USD slid to a 14-month low at 1.1590, breaking the 1.16-19 bounds hemming in the pair for months.
While that should have resulted in a flurry of activity and rising volatility, the follow-through has been negligible, with three weeks spent within 1.1522-1.1640.

With the end of the year not far off, there's a growing likelihood that profit-taking in the dollar will add to support which could boost EUR/USD back towards the peaks of its prior range.

A correction is unlikely to exceed the triple top at 1.1909 and 200-DMA at 1.1928, but could reach objectives for minimum technical corrections of the drop since June at 1.1665 and 1.1754.
EUR/USD may settle around 1.15-18 this year.

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Source:
Refinitiv IFR Research/Market Commentary

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