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17 Feb 2014
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Westpac
FXStreet (Edinburgh) - The EUR/USD is now struggling to keep the 1.3700 handle, trading in a softer tone after posting fresh 4-week highs above 1.3720 overnight.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “starts the week well placed to challenge the 1.3740/35 resistance – the recent high and Fibonacci retracement, where we look for the up move to struggle”.
In addition, analysts at Westpac Global Strategy Group “Given the premium Draghi placed on the upcoming round of data going into the ECB’s 6 Mar meeting, the euro should be more sensitive than usual to any run of weaker than expected data. Coeure’s highlighting of the debate on a negative deposit rate also argues for selling into EUR/USD around 1.3750/1.3800. But no sharp decline should be expected until USD becomes more appealing…”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “starts the week well placed to challenge the 1.3740/35 resistance – the recent high and Fibonacci retracement, where we look for the up move to struggle”.
In addition, analysts at Westpac Global Strategy Group “Given the premium Draghi placed on the upcoming round of data going into the ECB’s 6 Mar meeting, the euro should be more sensitive than usual to any run of weaker than expected data. Coeure’s highlighting of the debate on a negative deposit rate also argues for selling into EUR/USD around 1.3750/1.3800. But no sharp decline should be expected until USD becomes more appealing…”.