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3 Jul 2014
What’s the sentiment around the EUR/USD today? OCBC Bank and Commerzbank
FXStreet (Edinburgh) -The EUR/USD trades almost unchanged on Thursday ahead of the ECB meeting, with gains limited to the 1.3660/65 band so far.
Emmanuel Ng, FX Strategist at OCBC Bank, commented, “Intra-day, the common currency may remain somewhat unsteady ahead of the ECB, with the 200-day MA (1.3676) a near term cap while 1.3630 may tempt if 1.3650 is perforated… Note that our recent supported posture for the pair had been borne out of expected USD weakness rather than perceived EUR out performance”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted that the pair’s “rejection of price from the 55 day ma at 1.3693 has been quite emphatic and reinforces our view that the market has topped here at 1.3701. The 20 day ma at 1.3605 should offer only minor support en route to the much more important 1.3503 recent low and the 1.3482 2012 -2014 uptrend”.
Emmanuel Ng, FX Strategist at OCBC Bank, commented, “Intra-day, the common currency may remain somewhat unsteady ahead of the ECB, with the 200-day MA (1.3676) a near term cap while 1.3630 may tempt if 1.3650 is perforated… Note that our recent supported posture for the pair had been borne out of expected USD weakness rather than perceived EUR out performance”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted that the pair’s “rejection of price from the 55 day ma at 1.3693 has been quite emphatic and reinforces our view that the market has topped here at 1.3701. The 20 day ma at 1.3605 should offer only minor support en route to the much more important 1.3503 recent low and the 1.3482 2012 -2014 uptrend”.