18 Nov 2013
Flash: What lies ahead of the EUR/USD? – Commerzbank and Westpac
FXstreet.com (Edinburgh) - The single currency is extending its recovery from post-ECB lows sub-1.3300, pushing the EUR/USD to regain 1.3500 the figure ahead of key PMI data due in the second half of the week.
According to Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair “remains capped by the lower uptrend channel line and the 55 day moving average at 1.3503/19. While no daily chart close above it is being seen, we will maintain our bearish view. Should this resistance area be overcome, though, the 1.3548 November 6 and the 1.3646 October 3 high should cap”.
In addition, the research team at Westpac Global Strategy Group added, “Broad USD softness post-Yellen appearance should allow the pair to extend to around 1.3550 but we see little upside beyond there. European PMIs are likely to be underwhelming, while ECB officials are happy to emphasize that they still have easing options despite a 0.25% benchmark rate and an aversion to outright QE. Plenty of scope for fresh shorts, with specs still slightly long EUR last week. Look to sell rallies to mid-1.35s…”.
According to Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair “remains capped by the lower uptrend channel line and the 55 day moving average at 1.3503/19. While no daily chart close above it is being seen, we will maintain our bearish view. Should this resistance area be overcome, though, the 1.3548 November 6 and the 1.3646 October 3 high should cap”.
In addition, the research team at Westpac Global Strategy Group added, “Broad USD softness post-Yellen appearance should allow the pair to extend to around 1.3550 but we see little upside beyond there. European PMIs are likely to be underwhelming, while ECB officials are happy to emphasize that they still have easing options despite a 0.25% benchmark rate and an aversion to outright QE. Plenty of scope for fresh shorts, with specs still slightly long EUR last week. Look to sell rallies to mid-1.35s…”.