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20 May 2015
What’s in store for EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD is looking to consolidate the recent deep pullback to the low-1.1100s from last week’s tops around 1.1470.
“Yield differential arguments in favor of the USD may return to the forefront in the near term and this may be especially apparent with respect to the EUR. With hopes of a quick resolution in Greece still dim, near term risks for the pair may remain skewed towards 1.1100 with an initial cap expected towards the 100-day MA (1.1167)”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “is seeing an aggressive sell off ahead of the 1.1513/34 February high and 50% retracement. Attention has reverted to the key short term support offered by 1.1052, the 26th March high and the 1.1031 support line. A close below here is needed to negate upside pressure and focus attention on the downside”.
“Yield differential arguments in favor of the USD may return to the forefront in the near term and this may be especially apparent with respect to the EUR. With hopes of a quick resolution in Greece still dim, near term risks for the pair may remain skewed towards 1.1100 with an initial cap expected towards the 100-day MA (1.1167)”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “is seeing an aggressive sell off ahead of the 1.1513/34 February high and 50% retracement. Attention has reverted to the key short term support offered by 1.1052, the 26th March high and the 1.1031 support line. A close below here is needed to negate upside pressure and focus attention on the downside”.