11 Jul 2013
Flash: What can we do with the EUR/USD? – BTMU and Commerzbank
FXstreet.com (Edinburgh) -After hitting 3-week highs above 1.3200 the figure post-Bernanke speech on Wednesday, the EUR/USD initiated a move lower to test 1.3100 first, and then extending the correction to the current region of the mid 1.30s.
“The scope for the euro and pound to continue to strengthen against the US dollar now appears limited following last week’s policy announcements from the ECB and Bank of England which aimed to dampen further upside potential for UK and euro-zone rates on the back of strengthening cyclical momentum”, assessed Lee Hardman, Currency Analyst at BTMU.
In addition, Karen Jones, Head of FICC Technical Analyst at Commerzbank commented the pair “has reversed ahead of the 1.2740 2013 low. Rallies have cleared the 1.3060/1.3103 resistance and in doing so have neutralised the immediate outlook… With such an abrupt reversal being seen we can only assume some unfinished business on the topside”.
“The scope for the euro and pound to continue to strengthen against the US dollar now appears limited following last week’s policy announcements from the ECB and Bank of England which aimed to dampen further upside potential for UK and euro-zone rates on the back of strengthening cyclical momentum”, assessed Lee Hardman, Currency Analyst at BTMU.
In addition, Karen Jones, Head of FICC Technical Analyst at Commerzbank commented the pair “has reversed ahead of the 1.2740 2013 low. Rallies have cleared the 1.3060/1.3103 resistance and in doing so have neutralised the immediate outlook… With such an abrupt reversal being seen we can only assume some unfinished business on the topside”.