2 Sep 2013
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and UBS
FXstreet.com (Edinburgh) -The EUR/USD has left behind the key handle at 1.3200 overnight, advancing to session highs pre-European open in the area of 1.3220/25. A bid tone in the risk-on space after positive Chinese PMI data is propping up the bullish momentum, coupled with diminished jitters from the Syrian front.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “came under increasing downside pressure all week and starts this week sitting on support at 1.3205/1.3186 (38.2% retracement of the move from July). Failure here will confirm the top and leave the market under pressure to sell off further to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July)”.
The Swiss bank UBS revised down its outlook on the pair from bullish to neutral. Strategists Geoffrey Yu and Gareth Berry suggested, “Important support at 1.3186 was tested on Friday, and a close below this would be negative, exposing 1.3103 and then 1.3021. Resistance is at 1.3280 ahead of 1.3346”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “came under increasing downside pressure all week and starts this week sitting on support at 1.3205/1.3186 (38.2% retracement of the move from July). Failure here will confirm the top and leave the market under pressure to sell off further to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July)”.
The Swiss bank UBS revised down its outlook on the pair from bullish to neutral. Strategists Geoffrey Yu and Gareth Berry suggested, “Important support at 1.3186 was tested on Friday, and a close below this would be negative, exposing 1.3103 and then 1.3021. Resistance is at 1.3280 ahead of 1.3346”.