27 May 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD remains in a cautious mode on Tuesday, hovering over the mid-1.36s as market participants are eagerly waiting for the ECB meeting next week.
Karen Jones, Head of FICC Technical Analyss at Commerzbank, noted the pair “is awaiting a close below the 200 day ma at 1.3639. The market has seen some minor consolidation here but this has not provoked a rebound and it has been trading below here… While below 1.3740/70 the market is directly offered, above here would delay our outlook for a deeper retracement to 1.3862 but no more than 1.3920”.
“The FX markets continue to focus on the ECB and the possibility of new easing measures at the June meeting. Even though expectations are high, we still believe that the ECB will be able to surprise the market to the soft side and henceforth we continue to see downside for EUR/USD. The ECB speeches will be closely monitored today as it is probably one of the last chances for the ECB to communicate with the market”, commented Flemming Nielsen, Senior Analyst at Danske Bank.
Karen Jones, Head of FICC Technical Analyss at Commerzbank, noted the pair “is awaiting a close below the 200 day ma at 1.3639. The market has seen some minor consolidation here but this has not provoked a rebound and it has been trading below here… While below 1.3740/70 the market is directly offered, above here would delay our outlook for a deeper retracement to 1.3862 but no more than 1.3920”.
“The FX markets continue to focus on the ECB and the possibility of new easing measures at the June meeting. Even though expectations are high, we still believe that the ECB will be able to surprise the market to the soft side and henceforth we continue to see downside for EUR/USD. The ECB speeches will be closely monitored today as it is probably one of the last chances for the ECB to communicate with the market”, commented Flemming Nielsen, Senior Analyst at Danske Bank.