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3 Jun 2015
What’s in store for EUR/USD? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - The single currency keeps the buoyant tone on Wednesday, while market participants get ready for the slew of data releases in the euro area and the ECB meeting.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair’s “near term recovery, has not dislodged any resistance of note and for now remains within the realms of a correction only. However yesterdays move did feel directional and we are cautious. Initial resistance is found 1.1208/20, the high from the 22nd May and the 61.8% retracement of the recent sell off. While capped here an immediate negative bias remains entrenched”.
In addition, Emmanuel Ng, FX Strategist at OCBC Bank, noted “Although we continue to remain near term neutral on the EUR-USD, we note that with correlations between the EUR and the EZ 5y5y breakeven picking up into positive territory since May, the pair may attempt to reach for 1.1200 again with initial support expected towards the 100-day MA (1.1079) pending the ECB meeting”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair’s “near term recovery, has not dislodged any resistance of note and for now remains within the realms of a correction only. However yesterdays move did feel directional and we are cautious. Initial resistance is found 1.1208/20, the high from the 22nd May and the 61.8% retracement of the recent sell off. While capped here an immediate negative bias remains entrenched”.
In addition, Emmanuel Ng, FX Strategist at OCBC Bank, noted “Although we continue to remain near term neutral on the EUR-USD, we note that with correlations between the EUR and the EZ 5y5y breakeven picking up into positive territory since May, the pair may attempt to reach for 1.1200 again with initial support expected towards the 100-day MA (1.1079) pending the ECB meeting”.