2 Dec 2013
Flash: EUR/USD dips below 1.3550. What’s next? – Commerzbank and OCBC Bank
FXstreet.com (Edinburgh) - The single currency abandoned the area around 1.3600 at the beginning of the week, with the EUR/USD falling through the 1.3550 level despite the solid PMI data from the euro zone.
“The EUR-USD has to contend with a busy data calendar this week as well as the ECB meeting on Thursday. In the interim, an increasingly supported tone may persist, with 1.3653 the next visible resistance while the 55-day MA (1.3558) is expected to offer good support in the current environment”, suggested Emmanuel Ng, Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, observed “… near term strength continues to be viewed as corrective and we continue to view the pattern as a potential rising wedge pattern. The top of the pattern is at 1.3627 and a close below 1.3471 will complete it. We look for the 1.3295/94 zone to be retested (current November low and the 50% retracement of the move up from July).
“The EUR-USD has to contend with a busy data calendar this week as well as the ECB meeting on Thursday. In the interim, an increasingly supported tone may persist, with 1.3653 the next visible resistance while the 55-day MA (1.3558) is expected to offer good support in the current environment”, suggested Emmanuel Ng, Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, observed “… near term strength continues to be viewed as corrective and we continue to view the pattern as a potential rising wedge pattern. The top of the pattern is at 1.3627 and a close below 1.3471 will complete it. We look for the 1.3295/94 zone to be retested (current November low and the 50% retracement of the move up from July).