EUR/USD drops to sub-13600

FXstreet.com (Edinburgh) -The euro is now intensifying the softer tone against the greenback on Friday, dragging the EUR/USD to fresh intraday lows below 1.3600 the figure.

EUR/USD trims weekly gains

The pair is now extending its correction lower from yesterday’s peaks in the boundaries of 1.3650, testing Thursday’s lows near 1.3590/80 amidst a firmer tone in the USD. There are no data releases in the US economy due to the shutdown, with speeches by Fed’s members Stein, Dudley and Kocherlakota taking centre stage. According to Jyske Bank Team, “The narrow trading range between 1.28 y 1.34 in the past 12 months is expected to have come to an end. We expect that EUR/USD will breach to the downside in step with the Fed’s QE tapering and rising interest rates”.

EUR/USD key levels

The pair is now losing 0.17% at 1.3595 and a break below 1.3578 (low Oct.3) would expose 1.3526 (MA10d) and finally 1.3505 (low Oct. On the upside, the initial barrier aligns at 1.3660 (high Feb.4) followed by 1.3680 (161.8% Fib projection) and then 1.3711 (2013 high Feb.1).