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Forex Flash: What does the EUR/USD have to offer? – Commerzbank and UBS

FXstreet.com (Barcelona) - The single currency is grinding lower on Wednesday, trading in the area of 1.2770/75, levesl last seen in November, as jitters on Cyprus and poor euro zone data have been weighting on the cross.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, comments, “EUR/USD’s outlook is negative. It charted a fairly tight range yesterday following its close below the 200 day moving average for the first time since November 2012. The market remains directly offered intraday below 1.3037/50 and targets 1.2679/61”.

In addition, G.Yu and G.Berry, Strategists at the Swiss bank UBS, remain bearish on the cross, arguing “As bearish trend conditions persist, there is scope for weakness and a break below 1.2736 would expose 1.2662. Resistance is at 1.2890 ahead of 1.3048”.

Forex Flash: EUR/USD break of all key supports opens doors to 1.26 – TD Securities

Investors are concerned and consider the wider implications of the Cyprus bailout as well as an unsettled Italian parliament. Rumors on a potential Italian downgrade as well as deposit levies in other Eurozone countries (Italy in particular) are not helping sentiment either. “Deposit levy rumors appear significantly overblown, but for the EUR a lot of the damage has been done as it trades below the 1.28 figure for the first time since November”, wrote TD Securities analysts Shaun Osborne and Greg Moore, seeing a clear break of the all the key support levels after the drop below 1.28. “That makes it hard to argue for a rebound, making the EUR more of a sell on rallies to the mid 1.28 zone—in the short term at least. The next key support is spotted in the mid to upper 1.26 area”, they added.
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Forex: EUR/USD keeps falling, round 1.2755/60

The selling interest in the shared currency is now picking up pace, dragging the cross to the vicinity of 1.2760...
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