What’s the sentiment around EUR/USD today? – Danske Bank and Commerzbank

FXStreet (Edinburgh) - EUR/USD managed to shrug off recent weakness, advancing to the 1.2500 neighbourhood following the disappointment from October’s US Payrolls (214K).

“We expect any sell-off in the USD to be modest as the market will use any modest sell-off in the USD to buy into it. In particular, the USD should rally over the coming weeks against easing central banks currencies such as the EUR and JPY. We target 1.20 in EUR/USD”, suggested Kasper Kirkegaard, Chief Analyst at Danske Bank.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “break below the 1.2460/78.6% retracement support last week has not been confirmed by the daily RSI. This is now seeing some near term rebound early this week, but essentially the underlying bear trend is intact and the loss of the 1.2460 level suggests that the next leg lower is underway towards the 200 month ma at 1.2225”.