13 Jan 2015
EUR/USD set to test 1.15/1.16 in coming weeks – Westpac
FXStreet (Barcelona) - Analysts at Westpac note that the medium and long term downtrend remains for EUR/USD, and further anticipate it to test 1.15/1.16 levels in coming weeks.
Key Quotes
“EUR should continue to leak lower through much of January, certainly into the Greek election (25 Jan) and barely a couple days ahead of that, the ECB’s 22 Jan meeting, where odds continue to build that a full scale sovereign QE program is announced, along with some meaty detail rather than a vague pre-announcement. EUR/USD on target for a test of 1.15/1.16 in coming weeks.”
“We remain short EUR, though in smaller size this week vs last week, the main catalysts being a slightly less negative total yield signal. Otherwise, our growth signal remains very poor and just one signal remains decently bullish EUR - its still healthy external accounts as measured by our current account momentum signal.”
“Medium and long term downtrend remains in play. Recent bullish short term price and momentum factors pose the risk of a short squeeze this week.”
Key Quotes
“EUR should continue to leak lower through much of January, certainly into the Greek election (25 Jan) and barely a couple days ahead of that, the ECB’s 22 Jan meeting, where odds continue to build that a full scale sovereign QE program is announced, along with some meaty detail rather than a vague pre-announcement. EUR/USD on target for a test of 1.15/1.16 in coming weeks.”
“We remain short EUR, though in smaller size this week vs last week, the main catalysts being a slightly less negative total yield signal. Otherwise, our growth signal remains very poor and just one signal remains decently bullish EUR - its still healthy external accounts as measured by our current account momentum signal.”
“Medium and long term downtrend remains in play. Recent bullish short term price and momentum factors pose the risk of a short squeeze this week.”