7 May 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD is consolidating its recent bull run above the key barrier at 1.3900, hovering over 1.3930/35 and waiting for Yellen’s speech tonight.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “shot higher through the 1.3906 11th April high and is poised to challenge the 1.3967 March high. Currently we remain unable to rule out an extension to the two resistance lines at 1.4012 and 1.4023 (on weekly chart – these connect the highs from 2012), and, if seen, we look for these latter levels to hold the topside and provoke failure”.
“For EUR/USD the main focus will be on the Yellen speech tonight. However, as she is expected to repeat her dovish message we doubt it will change the direction for EUR/USD…
The move higher in EUR/USD has come despite the stepped-up rhetoric from the ECB and underlines that the market is ‘not afraid’ of the ECB as long as it just talks. It now seems quite likely that we could see a test of the 1.40 very soon, especially if we break the strong resistance level at 1.3967 - the 2014 high”.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “shot higher through the 1.3906 11th April high and is poised to challenge the 1.3967 March high. Currently we remain unable to rule out an extension to the two resistance lines at 1.4012 and 1.4023 (on weekly chart – these connect the highs from 2012), and, if seen, we look for these latter levels to hold the topside and provoke failure”.
“For EUR/USD the main focus will be on the Yellen speech tonight. However, as she is expected to repeat her dovish message we doubt it will change the direction for EUR/USD…
The move higher in EUR/USD has come despite the stepped-up rhetoric from the ECB and underlines that the market is ‘not afraid’ of the ECB as long as it just talks. It now seems quite likely that we could see a test of the 1.40 very soon, especially if we break the strong resistance level at 1.3967 - the 2014 high”.