26 Jun 2014
What’s the sentiment around he EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - After climbing to 1.3640 overnight, the EUR/USD is now trading back to the area of 1.3620/15 amidst thin trade and empty docket in the euro region.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “
has started to erode nearby resistance levels –while this does suppose that the market remains upside corrective, how far the correction will extend is still not clear… Our longer term view remains bearish while we are below 1.40, the Elliott wave count on the daily chart is suggesting that rebounds should not exceed the 1.3775 zone”.
“Despite overnight USD weakness, the EUR-USD may find near term head room fairly limited following sustained dovish rhetoric from the ECB’s Weidmann (inflation is expected to remain significantly below 2%) and Linde (considering asset purchases but this would entail its own complications). From a technical perspective however, the ability to persist above 1.3600 may tilt the balance of risks towards the 200-day MA (1.3672) as opposed to 1.3575 on the downside”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “
has started to erode nearby resistance levels –while this does suppose that the market remains upside corrective, how far the correction will extend is still not clear… Our longer term view remains bearish while we are below 1.40, the Elliott wave count on the daily chart is suggesting that rebounds should not exceed the 1.3775 zone”.
“Despite overnight USD weakness, the EUR-USD may find near term head room fairly limited following sustained dovish rhetoric from the ECB’s Weidmann (inflation is expected to remain significantly below 2%) and Linde (considering asset purchases but this would entail its own complications). From a technical perspective however, the ability to persist above 1.3600 may tilt the balance of risks towards the 200-day MA (1.3672) as opposed to 1.3575 on the downside”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.