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18 Apr 2013
Forex: Comments from Weidmann reinvigorated EUR bears - FXWW
FXstreet.com (Barcelona) - After what looked like an impressive close above 1.3150 the previous day, EUR/USD was unable to achieve any follow through as comments from European Central Bank officials regarding current interest rates sent the pair tumbling. According to Sean Lee of FXWW: “The comments from Weidmann reinvigorated EUR bears but we are not in a market driven by interest rate plays so I do not expect this to have a lasting impact.”
He then went on to say, “The EUR/USD market is short and if we continue to see liquidation of EUR/Gold positions, then it will struggle to fall too much regardless of what happens to interest rates. Levels around 1.2950 are likely to attract short-covering whilst 1.3200 is shaping as decent resistance so play the edges of this range (although my bias remains bearish overall).”
He then went on to say, “The EUR/USD market is short and if we continue to see liquidation of EUR/Gold positions, then it will struggle to fall too much regardless of what happens to interest rates. Levels around 1.2950 are likely to attract short-covering whilst 1.3200 is shaping as decent resistance so play the edges of this range (although my bias remains bearish overall).”