FXstreet.com (Córdoba) - Markets have positioned for euro-positive/dollar-negative events to unfold today and tomorrow, according to the BBH team. The euro is trading at its highest level vs. the dollar since May 14.
"From a purely technical perspective, charts point to an eventual test of the May 1 high near $1.3285. Near-term, 1.30 is the next big chart point", says BBH.
"The next potential shoe to drop for the dollar is tomorrow's FOMC decision. QE3 has been priced in by markets, and while a 'buy the rumor, sell the fact' reaction is plausible tomorrow, the momentum is favoring the single currency for now as perceived tail risk in the euro zone has fallen", they add.
"From a purely technical perspective, charts point to an eventual test of the May 1 high near $1.3285. Near-term, 1.30 is the next big chart point", says BBH.
"The next potential shoe to drop for the dollar is tomorrow's FOMC decision. QE3 has been priced in by markets, and while a 'buy the rumor, sell the fact' reaction is plausible tomorrow, the momentum is favoring the single currency for now as perceived tail risk in the euro zone has fallen", they add.
