EUR/USD: A Weekly Close Below 1.0770 Key; Immediate Focus On 1.0570 Ahead Of 1.0341 – TD

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EUR/USD has been hit hard by the financial crisis and has fallen to multi-year lows. What is the outlook for the currency in the near-term?

Here is their view, courtesy of eFXdata:

TD Research discusses EUR/USD outlook and sees a scope for further decline towards 1.0570 ahead of 1.0341 in the near-term.

“EUR has seen its share of volatility in recent days. Compared to other G10 currencies, however, it has been rather well-behaved. That may be starting to change. Spot has now pushed below the 20 February lows at 1.0778. If sustained, this is the clear break lower we have been looking for. Given the high degree of intraday volatility, we would like to see a weekly close below 1.0770 before drawing too many conclusions,” TD notes.

We do suspect, however, we are transitioning into a new, lower trading range. Our immediate focus now shifts to a test of 1.0570, although we note the early-2017 lows at 1.0341 could also come into view,” TD adds.

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About Author

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.