28 Apr 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Westpac
FXStreet (Edinburgh) - The bid tone is accelerating at the beginning of the week around the single currency, lifting the EUR/USD to fresh 2-week highs near 1.3880.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “EUR/USD held up well last week, well supported at 1.3785 and starts this week giving few clues to its next direction but if a move towards 1.3967 and 1.4000 is seen. We expect to see failure ahead of two resistance lines at 1.4008 and 1.4016”.
“The ECB is likely to get its wish for a rebound in headline inflation in the Apr ‘flash’ reading on Wed. This should produce a kneejerk EUR bounce. But we are inclined to fade strength given strong odds the ECB continues its verbal assault on the single currency. The May ECB meeting doesn’t seem likely to produce a policy change but risk/reward on any longs near 1.39 is poor multi-week/month”, noted analysts at Westpac Global Strategy Group.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “EUR/USD held up well last week, well supported at 1.3785 and starts this week giving few clues to its next direction but if a move towards 1.3967 and 1.4000 is seen. We expect to see failure ahead of two resistance lines at 1.4008 and 1.4016”.
“The ECB is likely to get its wish for a rebound in headline inflation in the Apr ‘flash’ reading on Wed. This should produce a kneejerk EUR bounce. But we are inclined to fade strength given strong odds the ECB continues its verbal assault on the single currency. The May ECB meeting doesn’t seem likely to produce a policy change but risk/reward on any longs near 1.39 is poor multi-week/month”, noted analysts at Westpac Global Strategy Group.