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16 Apr 2013
Forex Flash: EUR/USD sheltered from worst of recent risk-off contagion - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that with EUR/USD sheltered somewhat from the worst of any Risk-Off contagion in the current episode.
He feels that the pair may bounce around the 1.3000 vicinity pending further news flow with the 200-day MA (1.2917) expected to also offer good support. On the topside, he sees that the 55-day MA (1.3126) may cap in the interim given that sentiment remains cautious at this juncture. Looking to GBP/USD, he notes that apart from the data calendar, investors should look towards the BOE minutes for further domestic cues for the pound in the near term while the external environment also remains inhospitable to excessive risk taking in the near term. They write, “Immediate support is expected around the 55-day MA (1.5290) and a sustained breach may threaten the 1.5200 vicinity.”
He feels that the pair may bounce around the 1.3000 vicinity pending further news flow with the 200-day MA (1.2917) expected to also offer good support. On the topside, he sees that the 55-day MA (1.3126) may cap in the interim given that sentiment remains cautious at this juncture. Looking to GBP/USD, he notes that apart from the data calendar, investors should look towards the BOE minutes for further domestic cues for the pound in the near term while the external environment also remains inhospitable to excessive risk taking in the near term. They write, “Immediate support is expected around the 55-day MA (1.5290) and a sustained breach may threaten the 1.5200 vicinity.”