7 Nov 2013
Flash: EUR/USD around 1.3520 ahead of ECB. Where to next? – Commerzbank and OCBC Bank
FXstreet.com (Edinburgh) - The bloc currency keeps the flat tone on Thursday ahead of the crucial ECB monetary policy meeting, taking the EUR/USD to navigate in some sort of ‘wait-and-see’ mode. Market participants would scrutinize the CB statement and subsequent press conference by Mario Draghi, searching for clues regarding the next policy steps to be followed by the ECB.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “the market continues to sit on the 1.3462/20 4 month up channel and 38.2% retracement – the rebound from here has been tepid and the support zone remains exposed. Intraday rallies are expected to remain capped by 1.3585/1.3625”.
“Pending the ECB meeting later today, expect the EUR-USD to remain anchored around the 55-day MA (1.3486) and 1.3500 area. We think the risk-reward may continue to favor downside tests for the pair in the interim given the dovish baggage attached to the ECB”, suggested Emanuel Ng, Strategist at OCBC Bank.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “the market continues to sit on the 1.3462/20 4 month up channel and 38.2% retracement – the rebound from here has been tepid and the support zone remains exposed. Intraday rallies are expected to remain capped by 1.3585/1.3625”.
“Pending the ECB meeting later today, expect the EUR-USD to remain anchored around the 55-day MA (1.3486) and 1.3500 area. We think the risk-reward may continue to favor downside tests for the pair in the interim given the dovish baggage attached to the ECB”, suggested Emanuel Ng, Strategist at OCBC Bank.