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8 Sep 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD continues its march south at the beginning of the week, hovering over the area of recent lows around 1.2930.
“We look for losses to the 1.2755 July 2013 low. Longer term target remains the 200 month ma at 1.2208. Intraday rallies are likely to find resistance at 1.3040/1.3115 ahead of 1.3160 and the 1.3222 28th August high”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Furthermore, Chief Analyst Allan von Mehren at Danske Bank commented, “The market is using any opportunity to sell EUR/USD. This is the lesson from last week’s events. Friday’s US non-farm payroll report was much weaker than expected. Still, EUR/USD barely bounced. In our view, this reflects that there is much more than rate expectations behind EUR weakness and USD strength. Expect EUR/USD to range trade early this week but the bias for EUR/USD is lower”.
“We look for losses to the 1.2755 July 2013 low. Longer term target remains the 200 month ma at 1.2208. Intraday rallies are likely to find resistance at 1.3040/1.3115 ahead of 1.3160 and the 1.3222 28th August high”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Furthermore, Chief Analyst Allan von Mehren at Danske Bank commented, “The market is using any opportunity to sell EUR/USD. This is the lesson from last week’s events. Friday’s US non-farm payroll report was much weaker than expected. Still, EUR/USD barely bounced. In our view, this reflects that there is much more than rate expectations behind EUR weakness and USD strength. Expect EUR/USD to range trade early this week but the bias for EUR/USD is lower”.