17 Mar 2015
What’s the sentiment around EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - EUR/USD remains stuck around the 1.0600 handle on Tuesday, while markets get ready for the ZEW Survey and EMU’s CPI due later today.
“While we have been calling for the cross to head lower, the latest sell-off has proved more violent than we imagined, not least as the ECB QE effect has proved more EUR negative than expected. We expect EUR/USD to remain soft on a 3-6M horizon as the effects of ECB QE and the warm-up to Fed policy normalisation continue to weigh, and now see the cross at 0.99 (previously 1.05) in 6M”, commented Jens Pedersen, Senior Analyst at Danske Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “continues to trade around the base of the 30 year channel located at 1.0573. Just below here lies a Fibonacci extension to 1.0469, this is major technical support and we note that there is some divergence on the intraday, daily and weekly RSI”.
“While we have been calling for the cross to head lower, the latest sell-off has proved more violent than we imagined, not least as the ECB QE effect has proved more EUR negative than expected. We expect EUR/USD to remain soft on a 3-6M horizon as the effects of ECB QE and the warm-up to Fed policy normalisation continue to weigh, and now see the cross at 0.99 (previously 1.05) in 6M”, commented Jens Pedersen, Senior Analyst at Danske Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “continues to trade around the base of the 30 year channel located at 1.0573. Just below here lies a Fibonacci extension to 1.0469, this is major technical support and we note that there is some divergence on the intraday, daily and weekly RSI”.