26 Jun 2014
EUR/USD: Risks towards the 200-day MA at 1.3672 - OCBC
FXStreet (Bali) - Emmanuel Ng, FX Strategist at OCBC Bank, thinks that while fundamentally the Euro is not that well supported, technicals indicate that the currency may enjoy further room to the upside in the short term.
Key Quotes
"Despite overnight USD weakness, the EUR-USD may find near term head room fairly limited following sustained dovish rhetoric from the ECB’s Weidmann (inflation is expected to remain significantly below 2%) and Linde (considering asset purchases but this would entail its own complications).
"From a technical perspective however, the ability to persist above 1.3600 may tilt the balance of risks towards the 200-day MA (1.3672) as opposed to 1.3575 on the downside."
Key Quotes
"Despite overnight USD weakness, the EUR-USD may find near term head room fairly limited following sustained dovish rhetoric from the ECB’s Weidmann (inflation is expected to remain significantly below 2%) and Linde (considering asset purchases but this would entail its own complications).
"From a technical perspective however, the ability to persist above 1.3600 may tilt the balance of risks towards the 200-day MA (1.3672) as opposed to 1.3575 on the downside."