27 Jun 2013
Flash: EUR/USD may continue to probe downside - OCBC Bank
FXstreet.com (London) - Emmanuel Ng of OCBC Bank feels that if EZ data flow disappoints in the coming sessions, recent dovish ECB rhetoric (which may have been precipitated by the recent rise in money market rates) may be vindicated and EUR/USD may continue to probe the downside.
Ng continues to add that recent chatter about potential risk to the Italian fiscal picture are also doing common currency little good. In the meantime, he writes, “the Bernanke-Draghi disparity may potentially see the 1.2995/00 floor violated with the next stop south expected at around 1.2950. On a technical front, note that the pair has decisively breached the forest of moving averages clustered around the 1.3070 neighborhood, potentially portending a heavier tone going ahead.”
Ng continues to add that recent chatter about potential risk to the Italian fiscal picture are also doing common currency little good. In the meantime, he writes, “the Bernanke-Draghi disparity may potentially see the 1.2995/00 floor violated with the next stop south expected at around 1.2950. On a technical front, note that the pair has decisively breached the forest of moving averages clustered around the 1.3070 neighborhood, potentially portending a heavier tone going ahead.”