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12 Mar 2015
What’s the sentiment around EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD is looking to regain the 1.0600 handle on Thursday, extending the rebound from fresh 12-year lows in sub-1.05 levels.
“Yield arguments may continue to dominate price action for the pair in the near term with the pair now at the doorstep of 1.0500. Expect investors to sell on near term rallies ahead of the FOMC next week and despite an attempt by the ECB’s Nowotny to instill some calm in the markets”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has sold off to the base of the 30 year channel located at 1.0573. For a valid break of such a major level we would need 2 daily closes and preferably a weekly close below here. A weekly close below here will introduce scope to the 1.0080, 1.00/0.9900 zone and potentially 0.9610 the 61.8% retracement of the move up from 1985”.
“Yield arguments may continue to dominate price action for the pair in the near term with the pair now at the doorstep of 1.0500. Expect investors to sell on near term rallies ahead of the FOMC next week and despite an attempt by the ECB’s Nowotny to instill some calm in the markets”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has sold off to the base of the 30 year channel located at 1.0573. For a valid break of such a major level we would need 2 daily closes and preferably a weekly close below here. A weekly close below here will introduce scope to the 1.0080, 1.00/0.9900 zone and potentially 0.9610 the 61.8% retracement of the move up from 1985”.