28 Oct 2013
Flash: What’s the sentiment around the EUR/USD today? – OCBC Bank and Commerzbank
FXstreet.com (Edinburgh) -The EUR/USD remains mired in a narrow 1.3800-1.3820 range at the beginning of the week amidst lack of data/events in the euro area and with market participants focusing on the next FOMC meeting on Wednesday.
“In the near term, upside progress may be somewhat guarded with chatter of a technical fatigue coupled with suspicions that policy makers may begin to be slightly uncomfortable with the EUR’s valuation. Expect resistance towards 1.3835 and then 1.3850 while 1.3770 may provide initial support”, observed Emmanuel Ng, Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested, “The next resistance is the top of the 3 month channel at 1.3833/58, this is also the location of the 61.8% retracement of the move down from 2011 and represents the last defence for the major resistance at 1.3958/1.4002 band... We note the 13 count, the TD perfected set up and the doji – all imply failure here”.
“In the near term, upside progress may be somewhat guarded with chatter of a technical fatigue coupled with suspicions that policy makers may begin to be slightly uncomfortable with the EUR’s valuation. Expect resistance towards 1.3835 and then 1.3850 while 1.3770 may provide initial support”, observed Emmanuel Ng, Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested, “The next resistance is the top of the 3 month channel at 1.3833/58, this is also the location of the 61.8% retracement of the move down from 2011 and represents the last defence for the major resistance at 1.3958/1.4002 band... We note the 13 count, the TD perfected set up and the doji – all imply failure here”.