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31 Oct 2013
EUR/USD extends losses on strong Chicago PMI
The EUR/USD fell to a fresh low as the greenback strengthened on a surprisingly strong US Chicago PMI.
EUR/USD nears 1.3600
The Chicago PMI jumped to 65.9 in October from 55.7 the previous month, exceeding expectations (55.9) by more than 10 points. The employment component also rose to 57.7 from 53.2. The EUR/USD took another step lower and printed a low of 1.3602, last seen Oct 17.
EUR/USD technical outlook
From a technical view, the BBH analyst team noted earlier that only a break below 1.3600 (62% retracement of the October 16-25 rise) would suggest that this is anything more than a corrective dollar bounce.
Meanwhile, Valeria Bednarik, chief analyst at FXstreet.com commented that EUR/USD holds a strong bearish tone in short-term charts, suggesting a continuation to 1.3580 next strong support. Bednarik locates next supports at 1.3580 and 1.3540, while she places resistances at 1.3650, 1.3710 and 1.3750.
EUR/USD nears 1.3600
The Chicago PMI jumped to 65.9 in October from 55.7 the previous month, exceeding expectations (55.9) by more than 10 points. The employment component also rose to 57.7 from 53.2. The EUR/USD took another step lower and printed a low of 1.3602, last seen Oct 17.
EUR/USD technical outlook
From a technical view, the BBH analyst team noted earlier that only a break below 1.3600 (62% retracement of the October 16-25 rise) would suggest that this is anything more than a corrective dollar bounce.
Meanwhile, Valeria Bednarik, chief analyst at FXstreet.com commented that EUR/USD holds a strong bearish tone in short-term charts, suggesting a continuation to 1.3580 next strong support. Bednarik locates next supports at 1.3580 and 1.3540, while she places resistances at 1.3650, 1.3710 and 1.3750.