12 May 2015
EUR/USD bullish above 1.1050/80 – Westpac
FXStreet (Edinburgh) - Strategists at Westpac sees the upside trend unchanged as long as spot trades above the 1.1050/80 band.
Key Quotes
“Grexit risks appear to be more tangibly driving EUR (lower) and the currency appears to have failed to hold above the all-important 100 day moving average as well”.
“All together downside risks appear to be building again for EUR”.
“However, Q1 regionwide GDP later this week may well stymie downside”.
“Easier financial conditions thanks to the ECB’s QE program and Jan-Feb IP data back the story, pointing to regionwide growth in the vicinity of 0.5-0.6%, comfortably the fastest growth pace in four years”.
“EUR may have one more chance to run at 1.14-1.15 before the topside move is completely exhausted and long term shorts step up to the plate”.
“Interim uptrend has paused after challenging key resistance at 1.14/1.15. Short term momentum is negative while price corrects. Above 1.1050/80 the uptrend remains in play”.
Key Quotes
“Grexit risks appear to be more tangibly driving EUR (lower) and the currency appears to have failed to hold above the all-important 100 day moving average as well”.
“All together downside risks appear to be building again for EUR”.
“However, Q1 regionwide GDP later this week may well stymie downside”.
“Easier financial conditions thanks to the ECB’s QE program and Jan-Feb IP data back the story, pointing to regionwide growth in the vicinity of 0.5-0.6%, comfortably the fastest growth pace in four years”.
“EUR may have one more chance to run at 1.14-1.15 before the topside move is completely exhausted and long term shorts step up to the plate”.
“Interim uptrend has paused after challenging key resistance at 1.14/1.15. Short term momentum is negative while price corrects. Above 1.1050/80 the uptrend remains in play”.