12 May 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The demand for the single currency remains subdued at the beginning of the week, with the EUR/USD extending the bearish momentum from last week post-ECB gathering.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, “Last week EUR/USD spiked up to just shy of 1.4000 before forming a key day reversal and dropping through the 11 month support line at 1.3793... The 1.3678/43 seven month uptrend line, April low and end of February low are thus in focus”.
“We stress that, while further ECB easing is expected to have a negative impact on the euro, especially if the ECB introduces QE or cuts the deposit rate into negative, it will also require a re-pricing of the Fed through a steeper US money market curve in order to see EUR/USD below 1.30, as we expect on a 12-month horizon”, noted Anders Fishcher, Analyst at Danske Bank.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, “Last week EUR/USD spiked up to just shy of 1.4000 before forming a key day reversal and dropping through the 11 month support line at 1.3793... The 1.3678/43 seven month uptrend line, April low and end of February low are thus in focus”.
“We stress that, while further ECB easing is expected to have a negative impact on the euro, especially if the ECB introduces QE or cuts the deposit rate into negative, it will also require a re-pricing of the Fed through a steeper US money market curve in order to see EUR/USD below 1.30, as we expect on a 12-month horizon”, noted Anders Fishcher, Analyst at Danske Bank.