Flash: EUR/USD around 1.3500. Where to next? – UBS and Commerzbank

FXstreet.com (Edinburgh) - Mixed results from the key German ZEW Survey in collaboration with lower world economic growth by the OECD has dragged the EUR/USD to fresh intraday lows sub-1.3500.

Strategists at UBS remain bearish on the pair, arguing “with the MACD still below its zero lines, indicating a bearish trend, any further recovery will find strong resistance at 1.3564. While this holds, there’s scope for resumption of weakness to support at 1.3419 and then onto 1.3293”.

Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested, “Should a close above 1.3527 be made, though, a rise towards the 1.3548 November 6 and the 1.3569 September 19 highs and perhaps even the 1.3646 October 3 high may be seen before EUR/USD resumes its descent”.

OECD lowers 2014 global growth forecast to 3.6%

The OECD released its updated growth forecasts on Tuesday, cutting the projections for global GDP to 3.6% in 2014, down from the 4% seen in May and justifying this move with the slowdown evident in emerging markets and the sluggish recovery in developed nations.
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EUR/USD remains flat on the day on choppy trading

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