10 Oct 2013
Flash: EUR/USD clings to 1.3500. Where to now? – Commerzbank and Rabobank
FXstreet.com (Edinburgh) -The EUR/USD is battling to keep the 1.3500 handle on Thursday, as the selling sentiment has been growing bigger since the start of the week, amidst a stronger greenback and softer data from the euro area.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “finally sold off and looks set for a slide back to 1.3460/53. This is the August high and together with the 23.6% retracement of the move up from July at 1.3436 should act as the break down point to the 1.3300 3 month channel support”.
“While it may be a difficult to accept that the EUR can play a safe haven role at this point of time with the EZ crisis still playing out on the sidelines, it must be remembered that the USD’s credentials are soured by its persistent (if improving) twins deficit and dysfunctional political system and the yen is still associated with the most indebted county in the world.
We expect no ECB policy changes this year and look to buy EUR/USD on dips until a US agreement is in place”, assessed Jane Foley, Strategist at Rabobank.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “finally sold off and looks set for a slide back to 1.3460/53. This is the August high and together with the 23.6% retracement of the move up from July at 1.3436 should act as the break down point to the 1.3300 3 month channel support”.
“While it may be a difficult to accept that the EUR can play a safe haven role at this point of time with the EZ crisis still playing out on the sidelines, it must be remembered that the USD’s credentials are soured by its persistent (if improving) twins deficit and dysfunctional political system and the yen is still associated with the most indebted county in the world.
We expect no ECB policy changes this year and look to buy EUR/USD on dips until a US agreement is in place”, assessed Jane Foley, Strategist at Rabobank.