Back
19 May 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Westpac
FXStreet (Edinburgh) - The EUR/USD is looking to consolidate above the 1.3700 handle at the beginning of the week amidst scarce data and releases and speeches by ECB officials.
Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested, “A major top has been formed in EUR/USD. Beyond a minor recovery back towards the 1.3740 January high and the 1.3770 late April low the currency pair should slide back towards the 200 day moving average at 1.3628 and the 2012-2014 uptrend at 1.3397. Further resistance comes in along the breached support line, now resistance line, at 1.3816”.
“Price action in the lead-up to the early June ECB meeting is likely to be characterised by a strong sell on strength mentality. Likely weaker EZ PMIs (Thu) will sustain the EUR downtrend for another week yet but with US yields remaining soft, EUR bears are likely to see more mileage shorting EUR crosses (e.g. vs the dollar bloc, Scandis, GBP and JPY)”.
Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested, “A major top has been formed in EUR/USD. Beyond a minor recovery back towards the 1.3740 January high and the 1.3770 late April low the currency pair should slide back towards the 200 day moving average at 1.3628 and the 2012-2014 uptrend at 1.3397. Further resistance comes in along the breached support line, now resistance line, at 1.3816”.
“Price action in the lead-up to the early June ECB meeting is likely to be characterised by a strong sell on strength mentality. Likely weaker EZ PMIs (Thu) will sustain the EUR downtrend for another week yet but with US yields remaining soft, EUR bears are likely to see more mileage shorting EUR crosses (e.g. vs the dollar bloc, Scandis, GBP and JPY)”.