4 Sep 2013
Flash: What can we do with the EUR/USD? – Commerzbank and ANZ
FXstreet.com (Edinburgh) -The single currency is now alternating gains with losses while market participants are waiting for services PMI results and further EMU data. Risk-on trade has receded some ground after the chances of a US strike to Syria has increased as of late, with the EUR/USD meandering around 1.3160 and 1.3180.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “EUR/USD is continuing to grind lower and we note that the market has reached its 200 day ma at 1.3146. We suspect that this may prompt some profit taking. However intraday charts are indicating that rallies should be contained by 1.3200/1.3240 for further losses”.
In addition, Tim Riddell, Head of Global Markets Research at ANZ, commented, “The breach of 1.3270 duly triggered a deeper slide and has raised the potential of a sharp test of 1.3050 (50% of recent gains). This should also increase the risk, as outlined in the chart above, of a slide to test the 1.2750 area. Note that a measured move off the recent spike to 1.3450 would imply a deeper slide to test 1.2500”.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “EUR/USD is continuing to grind lower and we note that the market has reached its 200 day ma at 1.3146. We suspect that this may prompt some profit taking. However intraday charts are indicating that rallies should be contained by 1.3200/1.3240 for further losses”.
In addition, Tim Riddell, Head of Global Markets Research at ANZ, commented, “The breach of 1.3270 duly triggered a deeper slide and has raised the potential of a sharp test of 1.3050 (50% of recent gains). This should also increase the risk, as outlined in the chart above, of a slide to test the 1.2750 area. Note that a measured move off the recent spike to 1.3450 would imply a deeper slide to test 1.2500”.