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4 Aug 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD remains in a consolidative pattern around 1.3430/25, amidst thin trade and lack of significant catalysts in the region.
“We saw the start of a corrective rebound on Friday and we look for this to extend towards the 1.3510/27 zone, which is the 23.6% retracement and the 3 month downtrend… Only above 1.3527 would delay our immediate negative outlook for a deeper retracement to 1.3550 and possibly 1.3680/1.3700, while capped here a negative bias remain intact”, commented Karen Jones, Head of FICC Technical Analysis at Commerzbank.
According to Arne Rasmussen, Chief Analyst at Danske Bank, “For EUR/USD the main event this week will be the ECB meeting on Thursday, although it is unlikely to bring any news with the implementation of the TLTRO only one month away. If anything, a dovish tone from President Mario Draghi at the following press conference will weigh on EUR/USD. We target EUR/USD at 1.33 in 3M, 1.30 in 6M and 1.26 in 12M”.
“We saw the start of a corrective rebound on Friday and we look for this to extend towards the 1.3510/27 zone, which is the 23.6% retracement and the 3 month downtrend… Only above 1.3527 would delay our immediate negative outlook for a deeper retracement to 1.3550 and possibly 1.3680/1.3700, while capped here a negative bias remain intact”, commented Karen Jones, Head of FICC Technical Analysis at Commerzbank.
According to Arne Rasmussen, Chief Analyst at Danske Bank, “For EUR/USD the main event this week will be the ECB meeting on Thursday, although it is unlikely to bring any news with the implementation of the TLTRO only one month away. If anything, a dovish tone from President Mario Draghi at the following press conference will weigh on EUR/USD. We target EUR/USD at 1.33 in 3M, 1.30 in 6M and 1.26 in 12M”.