19 Jun 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - The EUR/USD is posting session lows above the 1.3600 handle, breaking above the overnight consolidation pattern.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “recovered slightly but has yet to overcome even initial resistance offered by the 20 day ma at 1.3597. However intraday charts are more positive and we would allow for a deeper corrective phase”.
Furthermore, “While the EUR may have caught a tailwind from dollar weakness from overnight, note that the Financial Times quoted the IMF calling for the ECB to consider QE. As such, resolute follow through beyond 1.3600-1.3630 before the 200-day MA (1.3667) may have to be dependent on wide spread dollar weakness while initial support is expected at 1.3550” observed Emmanuel Ng, FX Strategist at OCBC Bank.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “recovered slightly but has yet to overcome even initial resistance offered by the 20 day ma at 1.3597. However intraday charts are more positive and we would allow for a deeper corrective phase”.
Furthermore, “While the EUR may have caught a tailwind from dollar weakness from overnight, note that the Financial Times quoted the IMF calling for the ECB to consider QE. As such, resolute follow through beyond 1.3600-1.3630 before the 200-day MA (1.3667) may have to be dependent on wide spread dollar weakness while initial support is expected at 1.3550” observed Emmanuel Ng, FX Strategist at OCBC Bank.