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4 Jul 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - The demand for the single currency remains subdued post ECB and the outstanding numbers from US Non farm Payrolls in June, relegating the EUR/USD to the 1.3590/80 band.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The 20 day ma at 1.3602 is being eroded to leave the focus on the much more important 1.3503 recent low and the 1.3482 2012 -2014 uptrend… Only above 1.3701 will alleviate immediate downside pressure for a deeper retracement to 1.3807 (61.8% retracement)”.
Emmanuel Ng, FX Strategist at OCBC Bank, added, “Apart from detailing its lending program, the ECB’s Draghi went no further than reiterating that the exchange rate is very important for price stability. Despite no additional discomfort towards the EUR’s valuation, note however that TLTRO chatter may continue to keep the common currency slightly under the weather. If the 1.3600 support is breached on a sustained basis, a test towards 1.3550 cannot be discounted”.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The 20 day ma at 1.3602 is being eroded to leave the focus on the much more important 1.3503 recent low and the 1.3482 2012 -2014 uptrend… Only above 1.3701 will alleviate immediate downside pressure for a deeper retracement to 1.3807 (61.8% retracement)”.
Emmanuel Ng, FX Strategist at OCBC Bank, added, “Apart from detailing its lending program, the ECB’s Draghi went no further than reiterating that the exchange rate is very important for price stability. Despite no additional discomfort towards the EUR’s valuation, note however that TLTRO chatter may continue to keep the common currency slightly under the weather. If the 1.3600 support is breached on a sustained basis, a test towards 1.3550 cannot be discounted”.