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2 Oct 2013
Flash: EUR/USD flat around 1.3520. ECB looming. What next? – Commerzbank and Danske Bank
FXstreet.com (Edinburgh) -The single currency remains stuck around 1.3520 on Wednesday, retracing yesterday’s peaks in the vicinity of the 1.3600 handle ahead of the ECB gathering due in the European midday.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “We note we have TD resistance circa 1.3585 and the market stalled in this vicinity yesterday, we also note the divergence of the daily RSI, but currently we remain unable to rule out a retest of the 1.3670/1.3711 inter year pivot, where we would expect to see failure (December 2004 high and the February 2013 high)”.
Derek Halpenny, European Head of Global Markets Research at BTMU, suggested, “The main event of the day will of course be the ECB monetary policy meeting and press conference… The high level of the euro and the low level of inflation must be a concern and the ECB may become more direct in trying to cap the euro rise from here”.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “We note we have TD resistance circa 1.3585 and the market stalled in this vicinity yesterday, we also note the divergence of the daily RSI, but currently we remain unable to rule out a retest of the 1.3670/1.3711 inter year pivot, where we would expect to see failure (December 2004 high and the February 2013 high)”.
Derek Halpenny, European Head of Global Markets Research at BTMU, suggested, “The main event of the day will of course be the ECB monetary policy meeting and press conference… The high level of the euro and the low level of inflation must be a concern and the ECB may become more direct in trying to cap the euro rise from here”.