8 May 2015
What’s in store for EUR/USD today? – OCBC Bank and Commerzbank
FXStreet (Edinburgh) - EUR/USD is intensifying the downside today following the results in the UK elections and ahead of the key NFP in the US economy.
“While the overhang from the Greek deadlock ahead of the 11 May 15 EZ finance ministers meeting continues to hum in the background, immediate catalysts are expected to be bund yield development and the US NFP numbers. If the US labor market does not surprise significantly on the upside, markets may instead look to any repricing of European yields again. Our preference at this juncture remains for a buy dips posture in the pair”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
On the other hand, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “daily RSI has not confirmed the new high at 1.1392 and the TD perfected set up on the daily chart both point to a near term setback. Support is offered by at 1.1052 26th March high and while above here, EUR/USD will remain bid”.
“While the overhang from the Greek deadlock ahead of the 11 May 15 EZ finance ministers meeting continues to hum in the background, immediate catalysts are expected to be bund yield development and the US NFP numbers. If the US labor market does not surprise significantly on the upside, markets may instead look to any repricing of European yields again. Our preference at this juncture remains for a buy dips posture in the pair”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
On the other hand, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “daily RSI has not confirmed the new high at 1.1392 and the TD perfected set up on the daily chart both point to a near term setback. Support is offered by at 1.1052 26th March high and while above here, EUR/USD will remain bid”.