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6 Aug 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - The EUR/USD is looking to extend the bounce off the mid-1.3300s on Wednesday, amidst a second-tier data in the euro area.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s “correction higher failed to penetrate the cloud on the 240 minute chart and sold off and the market is back under pressure, although we suspect that the market is not quite ready to resume its down move yet… The outlook stays negative while capped by the 3 month downtrend at 1.3512”.
Furthermore, FX Strategist Emmanuel Ng at OCBC Bank, observed “Despite supportive EZ retail sales numbers, the soggy PMIs continued to keep the EUR under the weather and we think the risk of the pair becoming unhinged from the 1.3400 support remains significant as dovish expectations surrounding the ECB continue to circulate. Meanwhile, 1.3450 should provide topside shelter on any up ticks”.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s “correction higher failed to penetrate the cloud on the 240 minute chart and sold off and the market is back under pressure, although we suspect that the market is not quite ready to resume its down move yet… The outlook stays negative while capped by the 3 month downtrend at 1.3512”.
Furthermore, FX Strategist Emmanuel Ng at OCBC Bank, observed “Despite supportive EZ retail sales numbers, the soggy PMIs continued to keep the EUR under the weather and we think the risk of the pair becoming unhinged from the 1.3400 support remains significant as dovish expectations surrounding the ECB continue to circulate. Meanwhile, 1.3450 should provide topside shelter on any up ticks”.