25 Jun 2013
Flash: EUR/USD fortified by 50 and 100-day MA – Westpac
FXstreet.com (New York) - According to Global FX Strategist Sean Callow at Westpac, “The USD has a strong base which might limit the scope of the EUR/USD at its present levels around the 1.3100 region, and should see multi-day gains going forward.”
Moreover, “the EUR support from its 50 and 100-day MA at 1.3080 and 1.3086, which may limit fall, however a break below these figures will add to downside momentum – as such we remain short.” Callow adds. With regards to the USD/JPY, the base building due to Fed tapering and the LDP victory at Sunday's Tokyo metropolitan assembly election. The Upper House election only 4 weeks away and with it greater chance that the 3rd arrow will gain momentum – we like buying dips in USD/JPY toward 95.00.
Moreover, “the EUR support from its 50 and 100-day MA at 1.3080 and 1.3086, which may limit fall, however a break below these figures will add to downside momentum – as such we remain short.” Callow adds. With regards to the USD/JPY, the base building due to Fed tapering and the LDP victory at Sunday's Tokyo metropolitan assembly election. The Upper House election only 4 weeks away and with it greater chance that the 3rd arrow will gain momentum – we like buying dips in USD/JPY toward 95.00.