25 Apr 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD remains parked around 1.3830 on Friday, looking to consolidate the recent advance beyond 1.3800 the figure.
“Currently we cannot rule out further strength towards 1.3967 and 1.4000, but, if seen. we expect to see failure ahead of two resistance lines at 1.4003 and 1.4009. Nearby resistance is 1.3965/80”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, Senior Analyst Morten Helt at Danske Bank argued “The euro was supported yesterday by higher Eonia rates following a decline in excess liquidity to below EUR100bn and a stronger-than-expected German IFO survey. Overnight, EUR/USD continued to edge higher and is currently trading above 1.3830… However, we still expect EUR/USD to continue to trade in a very tight range around 1.38 adding further downward pressure on implied option volatility”.
“Currently we cannot rule out further strength towards 1.3967 and 1.4000, but, if seen. we expect to see failure ahead of two resistance lines at 1.4003 and 1.4009. Nearby resistance is 1.3965/80”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, Senior Analyst Morten Helt at Danske Bank argued “The euro was supported yesterday by higher Eonia rates following a decline in excess liquidity to below EUR100bn and a stronger-than-expected German IFO survey. Overnight, EUR/USD continued to edge higher and is currently trading above 1.3830… However, we still expect EUR/USD to continue to trade in a very tight range around 1.38 adding further downward pressure on implied option volatility”.