17 Oct 2013
Flash: EUR/USD regains 1.3600. US default averted. Where to now? – Commerzbank and OCBC Bank
FXstreet.com (Edinburgh) -The EUR/USD rapidly gained traction and left behind the key resistance at 1.3600 on Thursday, as the USD keeps losing ground in response to a US rating cut by Chinese agency Dagong from A to A-.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair’s “reversal around the 1.3600 mark and subsequent slide to below last week’s 1.3486 low, leads us to believe that a top is being formed, despite Wednesday’s bounce. The August high at 1.3453 remains in focus while 1.3607 caps”.
Furthermore, Strategist Emmanuel Ng at OCBC Bank commented, “In the interim, resistance around the 1.3600 area is expected to prevail while the pair may potentially drift towards the 1.3450 area if the US administration manages to kick the fiscal can further down the road by Thursday”.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair’s “reversal around the 1.3600 mark and subsequent slide to below last week’s 1.3486 low, leads us to believe that a top is being formed, despite Wednesday’s bounce. The August high at 1.3453 remains in focus while 1.3607 caps”.
Furthermore, Strategist Emmanuel Ng at OCBC Bank commented, “In the interim, resistance around the 1.3600 area is expected to prevail while the pair may potentially drift towards the 1.3450 area if the US administration manages to kick the fiscal can further down the road by Thursday”.