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4 Mar 2013
Forex Flash: What lies ahead of EUR/USD? – Commerzbank, UBS and Westpac
The single currency continues to trade in the vicinity of 1.3000/15 on Monday, ahead of a measure of the investor’s confidence in the euro area by the Sentix index.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes the correction higher has ended at 1.3163, with the market then dipped to fresh year lows. “We note the 13 count on the 240 minute chart, however at this stage consider that while rallies are contained by the accelerated downtrend at 1.3263, the market will remain directly offered”, adds the expert.
G.Yu and G.Berry, Strategists at UBS are now bearish on the cross from neutral, commenting, “A closing break below 1.2998 would be an important bearish development, exposing 1.2877. Resistance is at 1.3162”.
“Italy’s lack of a government adds to the weight on the euro from disappointing data which will mean Draghi can no longer dismiss rate cut talk. Risks to 1.27/1.28 multi-week”, suggested Sean Callow, Strategist at Westpac.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes the correction higher has ended at 1.3163, with the market then dipped to fresh year lows. “We note the 13 count on the 240 minute chart, however at this stage consider that while rallies are contained by the accelerated downtrend at 1.3263, the market will remain directly offered”, adds the expert.
G.Yu and G.Berry, Strategists at UBS are now bearish on the cross from neutral, commenting, “A closing break below 1.2998 would be an important bearish development, exposing 1.2877. Resistance is at 1.3162”.
“Italy’s lack of a government adds to the weight on the euro from disappointing data which will mean Draghi can no longer dismiss rate cut talk. Risks to 1.27/1.28 multi-week”, suggested Sean Callow, Strategist at Westpac.