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11 Sep 2013
Flash: What lies ahead of the EUR/USD? – Commerzbank and OCBC Bank
FXstreet.com (Edinburgh) -The single currency is trading on the back footing on Wednesday, hovering over the mid 1.3200s despite positive developments regarding Syria. Earlier on, the EUR/USD attempted to follow through weekly highs around 1.3280, although the effort ran out of steam and dragged the pair to session lows near 1.3240.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “bounce off the 50% retracement of the July-to August rally at 1.3104 has so far taken it to 1.3281 where the 50% retracement of the August-to-September decline can be seen. The 1.3300 region could also be reached but around it another down leg should be made”.
Strategist Emmanuel Ng at OCBC Bank also added, “Despite background Italian political uncertainty, the EURUSD edged higher in line with the majors on Tuesday and the pair may look towards 1.3300 and then 1.3315 if the broad dollar remains on the defensive. Downside support is expected towards the 55-day MA (1.3198)”.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “bounce off the 50% retracement of the July-to August rally at 1.3104 has so far taken it to 1.3281 where the 50% retracement of the August-to-September decline can be seen. The 1.3300 region could also be reached but around it another down leg should be made”.
Strategist Emmanuel Ng at OCBC Bank also added, “Despite background Italian political uncertainty, the EURUSD edged higher in line with the majors on Tuesday and the pair may look towards 1.3300 and then 1.3315 if the broad dollar remains on the defensive. Downside support is expected towards the 55-day MA (1.3198)”.