12 Nov 2013
Flash: EUR/USD dips lower. What can we do? – Commerzbank and UBS
FXstreet.com (Edinburgh) -The demand for the single currency remains subdued at the beginning of the week, taking the EUR/USD to test fresh lows around 1.3360, although still manages to navigate above post-ECB troughs around 1.3290.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has held sideways and is consolidating. Last week the market severed the 4 month uptrend and this trend line is now expected to act as resistance and is now found at 1.3486. The Elliott wave count is suggesting that we are likely to see a retracement into the 1.3475/1.3535 zone ahead of failure”.
Strategists at UBS keep their neutral outlook on the pair, adding “The recent weakness found support at 1.3293 and the pair has been consolidating over the past few sessions. Any further recovery will find strong resistance at 1.3501”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has held sideways and is consolidating. Last week the market severed the 4 month uptrend and this trend line is now expected to act as resistance and is now found at 1.3486. The Elliott wave count is suggesting that we are likely to see a retracement into the 1.3475/1.3535 zone ahead of failure”.
Strategists at UBS keep their neutral outlook on the pair, adding “The recent weakness found support at 1.3293 and the pair has been consolidating over the past few sessions. Any further recovery will find strong resistance at 1.3501”.