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7 Oct 2013
Flash: US shutdown continues. EUR/USD sub.13600. What’s next? – Commerzbank and Danske Bank
FXstreet.com (Edinburgh) -After hitting fresh multi-month highs near 1.3650 last week, the shared currency is now posting meager gains on Monday, hovering over 1.3570/75 as markets continues to express their concerns regarding the ongoing US shutdown.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued “EUR/USD’s daily RSI failed to confirm last weeks high at 1.3646. This coupled with the close proximity of the 1.3670/1.3710 key resistance increases the risk of failure here this week… Below 1.3453 August high will signal a slide back to the 1.3350/1.3182 55 and 200 day ma”.
“The FX markets are still taking the US government shutdown quite calmly with EUR/USD trading below 1.37… . We have recently seen broad-based pressure on the US dollar and unless we see a solution to the US political deadlock we expect it to continue this week”, commented Arne L. Rasmussen, Analyst at Danske Bank.