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Flash: What can we do with the EUR/USD? – Westpac, Commerzbank and UBS

FXstreet.com (Barcelona) - The shared currency has given away most of Thursday’s gains and is back trading around the mid 1.28s after peaking in the boundaries of 1.2930 post-US poor data.

In general, the likeliness of the Fed tapering its ongoing QE programme plus the economic weakness surrounding the euro area are the main catalysts of the recent fragility around the euro, keeping the FX community outlook on the cross heavily tilted to the downside:

“EUR/USD should enjoy some support from a dovish Bernanke but Europe’s grim economic momentum suggests selling the pair on rallies”, recommended Sean Callow, Strategist at Westapac.

Furthermore, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested, “Key short term resistance is the resistance line drawn from the February peak, this is located at 1.3148. However only above the 1.3243 recent high would negate our bearish outlook and this is not favoured”.

And G.Berry and G.Yu, Strategists at UBS, commented, “The pair is under pressure, trading close to Wednesday’s low at 1.2843. A break below this would expose 1.2746 ahead of 1.2662. Resistance is at 1.2943 ahead of 1.3029”. Recall that the Swiss bank keeps its bearish stance on the cross.

Flash: EUR/USD to breakout below 1.2839 – Commerzbank

Karen Jones at Commerzbank, Head of Technical analysis explains that the EUR/USD has sold off to and is holding at 1.2839, the 78.6% retracement of the move from April. She said that while this may prompt a small pause in the down-move, they ultimately look for it to break.
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Flash: CAD soft inflation report expected - TD Securities

Research teams at TD Securities commented on their opinions for Canadian dollar related news and said that today’s inflation report should look rather soft.
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