20 Nov 2013
Flash: What lies ahead of the EUR/USD? – Danske Bank and Commerzbank
FXstreet.com (Edinburgh) - The EUR/USD keeps consolidating above the 1.3500 handle on Wednesday, although losing some momentum after yesterday’s weekly tops near 1.3580.
In light of recent rumours from the ECB, Analyst Arne L. Rasmussen at Danske Bank commented, “there have recently been less dovish comments from the ECB downplaying the possibilities of a rate cut into negative territory and QE in the euro zone. Given that the market - according to the latest IMM data - is relatively neutral positioned in EUR/USD these comments have been able to push EUR/USD effectively above 1.35. We would not be surprised if a new move higher is seen today that will test the resistance level at 1.3600”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, said the pair “has now risen above the lower uptrend channel line and the 55 day moving average at 1.3510/35 and closed above both, neutralising our short term view. Medium term the 50% retracement of the move up from July at 1.3294 remains in focus, though”.
In light of recent rumours from the ECB, Analyst Arne L. Rasmussen at Danske Bank commented, “there have recently been less dovish comments from the ECB downplaying the possibilities of a rate cut into negative territory and QE in the euro zone. Given that the market - according to the latest IMM data - is relatively neutral positioned in EUR/USD these comments have been able to push EUR/USD effectively above 1.35. We would not be surprised if a new move higher is seen today that will test the resistance level at 1.3600”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, said the pair “has now risen above the lower uptrend channel line and the 55 day moving average at 1.3510/35 and closed above both, neutralising our short term view. Medium term the 50% retracement of the move up from July at 1.3294 remains in focus, though”.