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17 Jul 2013
Flash: What does the EUR/USD have to offer? – Commerzbank and UBS
FXstreet.com (Edinburgh) -The single currency continues to navigate within a narrow range on Wednesday, gyrating around 1.3130 as market participants are waiting for Bernanke’s testimony in the European afternoon. The EUR/USD is expected to range-bound ahead of the event, where a dovish tone is expected.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “it’s intraday charts continue to suggest that there is scope for a move towards the 1.3208 high (charted on the 11th July) but failure ahead of Fibonacci retracement at 1.3275 is favoured. Dips are currently indicated to hold very near term in the 1.2985/40 band”.
The Swiss bank UBS remains bearish on the cross, with Strategist Syed M. Mohi-uddin arguing “Yesterday the pair again saw the test of critical resistance at 1.3164, which was held on closing basis. With the MACD still below its zero line, the broader risk remains for the pair to resume downside. Support is at 1.2981 ahead of 1.2755”.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “it’s intraday charts continue to suggest that there is scope for a move towards the 1.3208 high (charted on the 11th July) but failure ahead of Fibonacci retracement at 1.3275 is favoured. Dips are currently indicated to hold very near term in the 1.2985/40 band”.
The Swiss bank UBS remains bearish on the cross, with Strategist Syed M. Mohi-uddin arguing “Yesterday the pair again saw the test of critical resistance at 1.3164, which was held on closing basis. With the MACD still below its zero line, the broader risk remains for the pair to resume downside. Support is at 1.2981 ahead of 1.2755”.