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5 Jan 2015
Euro likely to weaken further in 2015 – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, believes that the Euro weakness will continue further in 2015, anticipating the EUR/USD pair to see 1.1000 levels if it breaks below the November 2005 low at 1.1640.
Key Quotes
“Euro weakness has accelerated overnight after EUR/USD broke below key support at the 1.2000-level after which it declined sharply to an intra-day low 1.1864 reaching its’ lowest level since March 2006. It is a strong technical signal that the euro is likely to weaken further in 2015 moving deeper into undervalued territory.”
“Over the last decade EUR/USD has tended to bottom at around the 1.2000-level, which on this occasion appears less likely.”
“The latest developments highlight that the current Bloomberg consensus forecasts which expect EUR/USD to remain around the 1.2000-level throughout 2015 are likely too conservative and subject to building downside risks.”
“The next key support level for the pair is provided by the low from November 2005 at 1.1640, after which a break below could open the door for a move towards the 1.1000-level later in 2015.”
Key Quotes
“Euro weakness has accelerated overnight after EUR/USD broke below key support at the 1.2000-level after which it declined sharply to an intra-day low 1.1864 reaching its’ lowest level since March 2006. It is a strong technical signal that the euro is likely to weaken further in 2015 moving deeper into undervalued territory.”
“Over the last decade EUR/USD has tended to bottom at around the 1.2000-level, which on this occasion appears less likely.”
“The latest developments highlight that the current Bloomberg consensus forecasts which expect EUR/USD to remain around the 1.2000-level throughout 2015 are likely too conservative and subject to building downside risks.”
“The next key support level for the pair is provided by the low from November 2005 at 1.1640, after which a break below could open the door for a move towards the 1.1000-level later in 2015.”