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29 Apr 2013
Forex Flash: What does the EUR/USD have to offer? – Westpac, Commerzbank and UBS
FXstreet.com (Barcelona) - The single currency is prolonging its march north on Monday, flirting with the key mark at 1.3100 as risk appetite is prevailing in the global markets after the Italian elections.
“Weak US data and full pace Fed QE encourages demand with a 1.29 handle but it is hard to see the ECB meeting on Thu playing EUR-positive. While we expect a steady hand, the Draghi press conference should help cap any bounce to 1.32, given EZ economic deceleration including Germany”, suggested Sean Callow at Westpac.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the cross has been meandering between 1.2954/1.3050 last week, adding “These relatively small ranges are giving few clues to direction, however given the markets recent failure at its 50% retracement at 1.3225 our negative bias remains. Ahead of here lies the 2013 resistance line at 1.3123”.
While keeping the neutral bias on the cross, Strategists G.Berry and G.Yu at UBS argued, “Resistance is at 1.3108, a break above this would open the more critical 1.3202 and then 1.3232. Support is at 1.2955 and 1.2920 – a breach here would be a bearish development”.
“Weak US data and full pace Fed QE encourages demand with a 1.29 handle but it is hard to see the ECB meeting on Thu playing EUR-positive. While we expect a steady hand, the Draghi press conference should help cap any bounce to 1.32, given EZ economic deceleration including Germany”, suggested Sean Callow at Westpac.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the cross has been meandering between 1.2954/1.3050 last week, adding “These relatively small ranges are giving few clues to direction, however given the markets recent failure at its 50% retracement at 1.3225 our negative bias remains. Ahead of here lies the 2013 resistance line at 1.3123”.
While keeping the neutral bias on the cross, Strategists G.Berry and G.Yu at UBS argued, “Resistance is at 1.3108, a break above this would open the more critical 1.3202 and then 1.3232. Support is at 1.2955 and 1.2920 – a breach here would be a bearish development”.