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18 Feb 2014
EUR/USD risks to the downside
FXStreet (Guatemala) - EUR/USD is proving itself as we progress through the week after slow start. The pair is attempting to move higher, reaching 1.3771 so far.
However, analysts at Commerzank warn of risks to the downside and Karen Jones, chief analyst,explained failure of 1.3600 will retarget 1.3476/59, the recent low, the 55 month ma and Fibonacci retracement. “This remains the break down point to 1.3211, the 2012-2014 uptrend. Longer term we remain negative - the market recently failed ahead of its 2008-2014 downtrend at 1.3873 and 50% retracement at 1.3858 and we continue to view the peak at 1.3894 as an intermediate high”. Athanasios Vamvakidis , FX Strategist at the Bank of America Merrill Lynch also offered a bearish bias for the outlook of the EUR/USD, “Our recent reports have been emphasizing the importance of flows in understanding the Euro's resilience so far in 2014. EUR/USD has been range-bound, driven by a number of offsetting forces, and flows have been a key determinant for the Euro within its current range,"adding, “Indeed, we have recently said that the Euro has been supported by strong equity flows, despite the market sell-off in most of the rest of the world so far in 2014. Although we expect such flows to subside, as the market has already adjusted from being underweight European assets and Eurozone earnings have mostly disappointed recently, they have kept the Euro within a range at a relatively strong level for now."
EUR/USD Levels
The 20 DMA is 1.3614, the 50 DMA is 1.3653 and the 200 DMA is 1.3402. RSI (14) reads 77.04. Supports are ascending from 1.3637, 1.3655, 1.3674 and1.3692. Spot is 1.3756 while resistances are 1.3776 and 1.3795.
However, analysts at Commerzank warn of risks to the downside and Karen Jones, chief analyst,explained failure of 1.3600 will retarget 1.3476/59, the recent low, the 55 month ma and Fibonacci retracement. “This remains the break down point to 1.3211, the 2012-2014 uptrend. Longer term we remain negative - the market recently failed ahead of its 2008-2014 downtrend at 1.3873 and 50% retracement at 1.3858 and we continue to view the peak at 1.3894 as an intermediate high”. Athanasios Vamvakidis , FX Strategist at the Bank of America Merrill Lynch also offered a bearish bias for the outlook of the EUR/USD, “Our recent reports have been emphasizing the importance of flows in understanding the Euro's resilience so far in 2014. EUR/USD has been range-bound, driven by a number of offsetting forces, and flows have been a key determinant for the Euro within its current range,"adding, “Indeed, we have recently said that the Euro has been supported by strong equity flows, despite the market sell-off in most of the rest of the world so far in 2014. Although we expect such flows to subside, as the market has already adjusted from being underweight European assets and Eurozone earnings have mostly disappointed recently, they have kept the Euro within a range at a relatively strong level for now."
EUR/USD Levels
The 20 DMA is 1.3614, the 50 DMA is 1.3653 and the 200 DMA is 1.3402. RSI (14) reads 77.04. Supports are ascending from 1.3637, 1.3655, 1.3674 and1.3692. Spot is 1.3756 while resistances are 1.3776 and 1.3795.