Flash: What lies ahead of the EUR/USD? – OCBC Bank and Commerzbank

FXstreet.com (Edinburgh) -The shared currency is edging higher on Friday, retracing the whole Wednesday’s sell off to levels sub-1.3500 and now pushing the EUR/USD to the area of 1.3575/80.

In the opinion of Emmanuel Ng, Analyst at OCBC Bank, “With ECB rhetoric still sufficiently dovish, any potential near term dollar resilience may continue to weigh on the pair, with downside waypoints expected at 1.3500 and then 1.3450/70”.

In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested, “Currently we suspect that 1.3453 will hold the initial test. However intraday rallies should now remain capped by the 1.3545 zone”. The analyst added that a breach of 1.3308 would open the door for further pullbacks to 1.3191 (200-day moving average).

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