5 Nov 2013
Flash: EUR/USD resilient around 1.3500. What to expect? – Commerzbank and OCBC Bank
FXstreet.com (Edinburgh) -The EUR/USD remains mired around the 1.3500 handle on Tuesday, extending the uncertainty ahead of the ECB meeting on Thursday, where market consensus seems to be biased towards a dovish tone from the central bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, said the pair “has seen a very minor rebound from the 1.3453/20 4 month up channel and 38.2% retracement and we are not surprised to see this to hold the initial test. Intraday rallies are expected to remain tepid and should remain capped by 1.3525/85”.
In light of the next big event, Strategist Emmanuel Ng at OCBC Bank observed, “Ahead of the ECB meeting on Thursday, the EUR-USD may remain skewed towards the downside despite less than hawkish rhetoric out of the Fed. If the pair breaks down at the 1.3500 level or the 55-day MA (1.3481), a further unwind towards 1.3400 cannot be discounted.”
Karen Jones, Head of FICC Technical Analysis at Commerzbank, said the pair “has seen a very minor rebound from the 1.3453/20 4 month up channel and 38.2% retracement and we are not surprised to see this to hold the initial test. Intraday rallies are expected to remain tepid and should remain capped by 1.3525/85”.
In light of the next big event, Strategist Emmanuel Ng at OCBC Bank observed, “Ahead of the ECB meeting on Thursday, the EUR-USD may remain skewed towards the downside despite less than hawkish rhetoric out of the Fed. If the pair breaks down at the 1.3500 level or the 55-day MA (1.3481), a further unwind towards 1.3400 cannot be discounted.”