24 Nov 2014
What’s the sentiment around EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD is hovering over the 1.2400 handle at the beginning of the week, posting almost no reaction after the positive IFO figures from the German economy.
“Key resistance above the 1.2600/14 area is regarded as 1.2740/70, the 23.6% retracement of the entire move lower seen in 2014 and the lows for 2013 and late October high”, observed Axel Rudolph, Senior Technical Analyst at Commerzbank.
In addition, Emmanuel Ng, FX Strategist at OCBC Bank, commented, “With the EZ curve bull flattening further on Friday, expect implicit downside pressure on the EUR-USD to persist… On the CFTC front, net leveraged EUR shorts increased further in the latest week and note that these numbers also pre-dated Draghi’s latest comments and the pair may continue to test towards 1.2350 if 1.2400 is not reclaimed”.
“Key resistance above the 1.2600/14 area is regarded as 1.2740/70, the 23.6% retracement of the entire move lower seen in 2014 and the lows for 2013 and late October high”, observed Axel Rudolph, Senior Technical Analyst at Commerzbank.
In addition, Emmanuel Ng, FX Strategist at OCBC Bank, commented, “With the EZ curve bull flattening further on Friday, expect implicit downside pressure on the EUR-USD to persist… On the CFTC front, net leveraged EUR shorts increased further in the latest week and note that these numbers also pre-dated Draghi’s latest comments and the pair may continue to test towards 1.2350 if 1.2400 is not reclaimed”.