13 Feb 2014
Flash: What’s the perspective for the EUR/USD today? – Commerzbank and Societe Generale
FXStreet (Edinburgh) - The EUR/USD is consolidating the recent ascent beyond 1.360 the figure so far, recovering ground lost post-Coeure comments on Wednesday and looking to the US retail sales and Yellen’s speech as main drivers for the session.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, observed the pair “is on the defensive and once 1.3550 cracks we should see a return visit to the 1.3476/59, recent low, 55 month ma and Fibonacci retracement… The 240 minute chart suggests there remains the possibility of a test of 1.3689/1.3740 before failure”.
In addition, Strategist Kit Juckes at Societe Generale noted “Recent ECB comments continue to reflect a desire to show there is more easing available (negative deposit rates are flavour of the week) but there seems little appetite to act while economic data are improving and CPI growth still positive. There are sellers into weakness of EUR/USD around but at the risk of sounding like a broken record, we are in a 1.34-1.38 range, with the likelihood that we break decisively lower only much later this year at the earliest”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, observed the pair “is on the defensive and once 1.3550 cracks we should see a return visit to the 1.3476/59, recent low, 55 month ma and Fibonacci retracement… The 240 minute chart suggests there remains the possibility of a test of 1.3689/1.3740 before failure”.
In addition, Strategist Kit Juckes at Societe Generale noted “Recent ECB comments continue to reflect a desire to show there is more easing available (negative deposit rates are flavour of the week) but there seems little appetite to act while economic data are improving and CPI growth still positive. There are sellers into weakness of EUR/USD around but at the risk of sounding like a broken record, we are in a 1.34-1.38 range, with the likelihood that we break decisively lower only much later this year at the earliest”.