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10 Sep 2013
Flash: What lies ahead of the EUR/USD? – Commerzbank and Danske Bank
FXstreet.com (Edinburgh) -The EUR/USD surrenders some gains after the opening bell in London on Tuesday, hovering over the mid 1.3200s after flirting with 1.3280 on Monday. Positive results from the Chinese docket plus auspicious news from the Syrian front are behind the recent EUR strength.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Only an unexpected rise above the August 1.3453 high will allow gains to the 1.3500/20 region. This is not our favoured view and we believe that the currency pair will see another leg lower towards 1.3050/25 instead”.
In addition, Sverre Holbek, Senior Analyst at Danske Bank, commented, “the combinations of falling US yields and positioning might push EUR/USD slightly higher over the next couple of days. Note that also from a technical perspective further upside is seen for EUR/USD, but strong resistance is seen at 1.3305. From a fundamental point of view we would sell the cross at this level, given our view on the timing of Fed tapering”.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Only an unexpected rise above the August 1.3453 high will allow gains to the 1.3500/20 region. This is not our favoured view and we believe that the currency pair will see another leg lower towards 1.3050/25 instead”.
In addition, Sverre Holbek, Senior Analyst at Danske Bank, commented, “the combinations of falling US yields and positioning might push EUR/USD slightly higher over the next couple of days. Note that also from a technical perspective further upside is seen for EUR/USD, but strong resistance is seen at 1.3305. From a fundamental point of view we would sell the cross at this level, given our view on the timing of Fed tapering”.