8 May 2015
EUR/USD correction could squeeze to 1.1630 – SG
FXStreet (Barcelona) - The Team at Societe Generale, believes that EUR/USD correction might squeeze higher towards 1.1630 before falling back.
Key Quotes
“We have been counselling to stay on the sidelines on the dollar for a few weeks now, and are happy to continue doing so for the time being. Positioning data still suggests a large net long speculative dollar position in the market, though it is no doubt being reduced as we speak. EUR/USD risk reversals beyond the 1-month duration have also not adjusted much in the euro rally.”
“Nonetheless, our technical analysts highlight that EUR/USD is approaching a key technical resistance level at 1.1536, and the near-term event risk of the US non-farm payrolls data looms just ahead. Spectral analysis suggests that EUR/USD could squeeze to 1.1630 before falling back.”
“There is thus attractive risk-reward in going short EUR/USD again on a further rally to 1.15-1.16.”
“Our quant analysts similarly see the DXY correction as limited to 93.25”
Key Quotes
“We have been counselling to stay on the sidelines on the dollar for a few weeks now, and are happy to continue doing so for the time being. Positioning data still suggests a large net long speculative dollar position in the market, though it is no doubt being reduced as we speak. EUR/USD risk reversals beyond the 1-month duration have also not adjusted much in the euro rally.”
“Nonetheless, our technical analysts highlight that EUR/USD is approaching a key technical resistance level at 1.1536, and the near-term event risk of the US non-farm payrolls data looms just ahead. Spectral analysis suggests that EUR/USD could squeeze to 1.1630 before falling back.”
“There is thus attractive risk-reward in going short EUR/USD again on a further rally to 1.15-1.16.”
“Our quant analysts similarly see the DXY correction as limited to 93.25”