What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank

FXStreet (Edinburgh) - The EUR/USD keeps the narrow range on Tuesday, hovering over the key handle at 1.3600 while traders are waiting for the release of the German IFO series.

In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “charted a tiny range to leave the immediate outlook unchanged. The market is seeing some fairly choppy trading but remains essentially corrective near term… Our longer term view remains bearish while we are below 1.40, the Elliott wave count on the daily chart is suggesting that rebounds should not exceed the 1.3775 zone”.

Emmanuel Ng, FX Strategist at OCBC Bank, added, “a sustained break above the 1.3600-1.3650 neighborhood may neutralize our inherent heavy bias for the pair. On a more structural note, the pair’s eventual direction is expected to be determined by the tussle between ECB-inspired dovishness and prevailing broad based USD vulnerability”.

Fundamental case for EUR/USD lower continues - RBS

According to from RBS, the fundamental case for selling EUR/USD was made stronger with bigger-than-expected rises in the US Markit manufacturing PMI (57.5 in June, a high in this series since 2011), existing home sales and Chicago Fed National Activity Index, vs. a bigger fall than expected in the Eurozone Markit PMIs for manufacturing and services.
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EUR may drop again on bad IFO numbers

Independent Analyst Vladimir Mihaylov notes that the EUR is continuing consolidation below 1.3600, and yesterday's attempt to break that resistance has failed because of the worse than expected PMI data.
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