24 Jul 2013
Flash: What lies ahead of the EUR/USD? – Commerzbank and UBS
FXstreet.com (Edinburgh) -The euro is trading on the back foot in the middle of the week although keeping the 1.3200 handle so far, hurt by disappointing data from the manufacturing sector in China. However, manufacturing PMI prints in the euro area would support the EUR/USD if they extend the recent improvements in the economic indicators of the 17-nation bloc.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s “current strength is expected to terminate ahead of the 78.6% Fibonacci retracement at 1.3275. The market stays bid above 1.30 and loss of this zone is needed to re-target the 1.2755/40 recent low and April low”.
Strategists Gareth Berry and Geoffrey Yu at UBS remain bullish on the pair, arguing, “With the trending and momentum indicators pointing higher, focus is on further upside. Key resistance is at 1.3417. Support is at 1.3134 ahead of 1.3052”.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s “current strength is expected to terminate ahead of the 78.6% Fibonacci retracement at 1.3275. The market stays bid above 1.30 and loss of this zone is needed to re-target the 1.2755/40 recent low and April low”.
Strategists Gareth Berry and Geoffrey Yu at UBS remain bullish on the pair, arguing, “With the trending and momentum indicators pointing higher, focus is on further upside. Key resistance is at 1.3417. Support is at 1.3134 ahead of 1.3052”.