9 May 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The demand for the EUR remains subdued at the end of the week, still suffering yesterday’s dovish tone by ECB’s Draghi. The EUR/USD keeps meandering in the lower band of the weekly range around 1.3820/15.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The key day reversal from here suggests that we have topped and we should see the market ease back to test the 1.3790 11 month support line, this guards the more shallow 1.3674/43 6 month uptrend, the end of the April low and the end of February low”.
Furthermore, Analyst Anders Fischer at Danske Bank added “The imminent reaction to ECB yesterday was to send EUR/USD up marginally close to the psychological important level at 1.40. However, as it became clear that the door is now open for more easing at the June meeting, the euro reversed its course and EUR/USD dropped to 1.3840… However, we should be aware that supportive factors like the euro-zone’s current account surplus, the flow into peripheral bond markets and the positive European data surprises are still in place”.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The key day reversal from here suggests that we have topped and we should see the market ease back to test the 1.3790 11 month support line, this guards the more shallow 1.3674/43 6 month uptrend, the end of the April low and the end of February low”.
Furthermore, Analyst Anders Fischer at Danske Bank added “The imminent reaction to ECB yesterday was to send EUR/USD up marginally close to the psychological important level at 1.40. However, as it became clear that the door is now open for more easing at the June meeting, the euro reversed its course and EUR/USD dropped to 1.3840… However, we should be aware that supportive factors like the euro-zone’s current account surplus, the flow into peripheral bond markets and the positive European data surprises are still in place”.