5 Sep 2013
Flash: What’s the sentiment around the EUR/USD today? – Danske Bank and Commerzbank
FXstreet.com (Edinburgh) -The single currency is giving away yesterday’s advance beyond the key 1.3200 handle, as the risk aversion looks set to prevail amongst traders on Thursday. Key data from German Factory Orders and the ECB monetary policy meeting would be enough to spark some fireworks towards the European midday.
“EUR/USD is holding temporarily at its 200 day ma at 1.3147, we look for this to be eroded shortly. Intraday charts are indicating that rallies should be contained by 1.3240/70 for further losses. We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July)”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Chief Analyst Allan von Mehren at the Nordic Danske Bank commented, “EUR/USD has lost momentum recently. While partly due to taper-supportive US data and partly geopolitical concerns, positioning ahead of ECB has probably been a factor. If he does deliver dovish comments the cross will continue its decline”.
“EUR/USD is holding temporarily at its 200 day ma at 1.3147, we look for this to be eroded shortly. Intraday charts are indicating that rallies should be contained by 1.3240/70 for further losses. We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July)”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Chief Analyst Allan von Mehren at the Nordic Danske Bank commented, “EUR/USD has lost momentum recently. While partly due to taper-supportive US data and partly geopolitical concerns, positioning ahead of ECB has probably been a factor. If he does deliver dovish comments the cross will continue its decline”.