4 Nov 2013
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Westpac
FXstreet.com (Edinburgh) -The shared currency is prolonging its intraday rebound from 1.3440 after mixed results from euro zone manufacturing PMIs lifted the EUR/USD beyond the key 1.3500 handle on Monday.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has sold off towards the 1.3438/20 4 month up channel and 38.2% retracement and we would allow for this to hold the initial test. This represents a key break down point, a close below here will trigger losses to 1.3104, the September low”.
In addition, the research team at Westpac Global Strategy Group commented “Momentum and positioning for the currency is looking increasingly extended, leaving the euro at risk of 1.3400. We can’t get much more bearish however, with the pair already 3 cents off the late Oct highs and US data unlikely to be very inspirational multi-day/week”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has sold off towards the 1.3438/20 4 month up channel and 38.2% retracement and we would allow for this to hold the initial test. This represents a key break down point, a close below here will trigger losses to 1.3104, the September low”.
In addition, the research team at Westpac Global Strategy Group commented “Momentum and positioning for the currency is looking increasingly extended, leaving the euro at risk of 1.3400. We can’t get much more bearish however, with the pair already 3 cents off the late Oct highs and US data unlikely to be very inspirational multi-day/week”.