Back
19 May 2015
EUR/USD could still visit 1.15 – Westpac
FXStreet (Edinburgh) - Strategists at Westpac see the possibility that the pair could test the 1.1500 level.
Key Quotes
“EUR/USD price action remains constructive and the pair will likely see 1.15 seen enough if not next week amid likely further underwhelming US data this week (Philly, Markit PMI’s notably at risk amid ongoing pressure from the earlier appreciation of the USD and the washout in the energy patch)”.
“This week’s EZ PMI and ZEW surveys are unlikely to shoot the lights out either, though, with the surge in bund yields and festering Greek worries fresh risks for sentiment to overcome”.
“That aside, bund yield trends likely key to EUR’s fortunes. Some risk building that the bund-led global bond sell-off may morph into generalized risk aversion that hits EUR-funded carry positions, giving EUR a further lift”.
“Interim uptrend has paused after challenging key resistance at 1.14/1.15. Above 1.1131 the uptrend remains in play. Close above 1.1535 targets 1.19+”.
Key Quotes
“EUR/USD price action remains constructive and the pair will likely see 1.15 seen enough if not next week amid likely further underwhelming US data this week (Philly, Markit PMI’s notably at risk amid ongoing pressure from the earlier appreciation of the USD and the washout in the energy patch)”.
“This week’s EZ PMI and ZEW surveys are unlikely to shoot the lights out either, though, with the surge in bund yields and festering Greek worries fresh risks for sentiment to overcome”.
“That aside, bund yield trends likely key to EUR’s fortunes. Some risk building that the bund-led global bond sell-off may morph into generalized risk aversion that hits EUR-funded carry positions, giving EUR a further lift”.
“Interim uptrend has paused after challenging key resistance at 1.14/1.15. Above 1.1131 the uptrend remains in play. Close above 1.1535 targets 1.19+”.