5 May 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD keep the trade within the upper band of the recent range between 1.3870/1.3880, ahead of the Sentix index in EMU due later.
“Currently we remain unable to rule out an extension to the 1.3967 recent high and possibly the two resistance lines at 1.4012 and 1.4023 (on weekly chart – these connect the highs from 2012), and, if seen, we look for these latter levels to hold the topside. We view the longer term pattern as a potential bearish wedge”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, Flemming Nielsen, Senior Analyst at Danske Bank, observed, “Despite a very eventful week last week with a series of important data releases, EUR/USD traded within the range of 1.3775-1.3890 for the entire week. Indeed, most data releases and not least the FOMC meeting came out more or less as expected, but not even the strong US labour market report on Friday was enough to break out of the range... We expect Draghi to sound very dovish as he sticks to his old strategy of verbal intervention. However, this will probably not have any longer lasting effect on the euro”.
“Currently we remain unable to rule out an extension to the 1.3967 recent high and possibly the two resistance lines at 1.4012 and 1.4023 (on weekly chart – these connect the highs from 2012), and, if seen, we look for these latter levels to hold the topside. We view the longer term pattern as a potential bearish wedge”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, Flemming Nielsen, Senior Analyst at Danske Bank, observed, “Despite a very eventful week last week with a series of important data releases, EUR/USD traded within the range of 1.3775-1.3890 for the entire week. Indeed, most data releases and not least the FOMC meeting came out more or less as expected, but not even the strong US labour market report on Friday was enough to break out of the range... We expect Draghi to sound very dovish as he sticks to his old strategy of verbal intervention. However, this will probably not have any longer lasting effect on the euro”.