10 Mar 2015
What’s the sentiment around EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) -The firmer tone around the US dollar is pushing EUR/USD lower on Tuesday, testing the area below 1.0800 the figure.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has reached 1.0835, the 50% retracement of the entire move up from 1985, we have yet to see a close below here and may see a small rebound, we note the complex divergence on the daily chart and the divergence on the weekly chart”.
In addition, FX Strategist at OCBC Bank Emmanuel Ng, argued “In addition to the dead weight from the dollar, the EUR may continue to remain vulnerable ahead of talks between Greek officials and the troika on Wednesday. In the interim, the reality of softer EZ bond yields on the back of the ECB’s QE is already manifesting. While a retracement back towards 1.0920 cannot be discounted, risks for the pair may remain skewed lower at this juncture with the 1.0800 support now perceived to be under immediate threat”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has reached 1.0835, the 50% retracement of the entire move up from 1985, we have yet to see a close below here and may see a small rebound, we note the complex divergence on the daily chart and the divergence on the weekly chart”.
In addition, FX Strategist at OCBC Bank Emmanuel Ng, argued “In addition to the dead weight from the dollar, the EUR may continue to remain vulnerable ahead of talks between Greek officials and the troika on Wednesday. In the interim, the reality of softer EZ bond yields on the back of the ECB’s QE is already manifesting. While a retracement back towards 1.0920 cannot be discounted, risks for the pair may remain skewed lower at this juncture with the 1.0800 support now perceived to be under immediate threat”.