From Wednesday high at 1.3745 to Friday’s low fell 250 pips and for the third week in a row, EUR/USD failed to post a weekly close above 1.3650.
The Talking-Forex.com Team points out that the 1.3500 is a key level, “which once broken will open the door towards a support level located at 1.3479 which is also the 38.2% Fibonacci retracement of the 1.2860-1.3862 move”.
The Euro finished the week mostly higher across the board and fell, among majors, only against the Dollar and the Loonie.
Despite recent weakness, Danske Bank analysts expect the EUR/USD to rise over the year, “with the market seeming to get a bit ahead of itself in pricing in ECB hikes, and with speculative long EUR positions building, we had cautioned against a correction lower in EUR/USD. While the correction could have further to run in the near term –
particularly if risk appetite stays under pressure – we expect a widening of the EURUSD
rate spread in the medium term to send the pair to 1.45 by year-end”.