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26 Aug 2013
Flash: EUR/USD bias turns bearish – TD Securities
FXstreet.com (New York) - A quiet European morning devoid of data has kept the EUR/USD price action very narrow along with the theme across the FX space, notes the TD Securities Team.
Key quotes
“That has left the overall consolidative tone that has persisted over the past two weeks still intact. US data was the only clear catalyst for the pair today, while the European data highlights for the week include German IFO survey tomorrow, German unemployment and EZ credit data on Wednesday and EZ CPI on Friday.”
“German-US short term spreads remain near the lows for the year (EUR/USD supportive) and CFTC data from just before the weekend revealed that the net long position in the EUR by speculative currency accounts jumped significantly as of last Tuesday—to the highest level since early February.”
“It’s worth pointing out that early February also marked the cycle high for the pair, which traded in a straight line lower over the next two months. Better data this week has the potential to see a small squeeze higher, but continue to believe that EUR/USD is near its medium to longer term high and remain bearish on the bigger picture outlook of the pair.”
Key quotes
“That has left the overall consolidative tone that has persisted over the past two weeks still intact. US data was the only clear catalyst for the pair today, while the European data highlights for the week include German IFO survey tomorrow, German unemployment and EZ credit data on Wednesday and EZ CPI on Friday.”
“German-US short term spreads remain near the lows for the year (EUR/USD supportive) and CFTC data from just before the weekend revealed that the net long position in the EUR by speculative currency accounts jumped significantly as of last Tuesday—to the highest level since early February.”
“It’s worth pointing out that early February also marked the cycle high for the pair, which traded in a straight line lower over the next two months. Better data this week has the potential to see a small squeeze higher, but continue to believe that EUR/USD is near its medium to longer term high and remain bearish on the bigger picture outlook of the pair.”