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21 Oct 2013
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Westpac
FXstreet.com (Edinburgh) -The shared currency is trading on a softer tone at the beginning of the week, amidst a better performance from the greenback so far after last week’s pronounced sell-off. Empty docket in the euro area would leave the EUR/USD to the mercy of risk trends and the releases in the US economy.
Axel Rudolph, Senior Technical Analyst at Commerzbank, said the pair “is struggling in the 1.3670/1.3711 resistance area which we still expect to cap. It is made up of the 2004 high, April 2007 and 2010 highs as well as the January 2013 peak… Should it be bettered, the March 2009 high at 1.3739 should cap”.
In addition, analysts at Westpac Global Strategy Group commented “Having reached our 1.37 one month target, there is no obvious barrier to a 1.38 handle. Confidence in treasuries has been shaken by the rolling cycle of US political dysfunction. The euro will be one beneficiary, with the ECB backstop ensuring default risk within the Eurozone is very low. Slow growth won’t worry EZ bond investors though multi-month should limit the scale of EUR gains”.
Axel Rudolph, Senior Technical Analyst at Commerzbank, said the pair “is struggling in the 1.3670/1.3711 resistance area which we still expect to cap. It is made up of the 2004 high, April 2007 and 2010 highs as well as the January 2013 peak… Should it be bettered, the March 2009 high at 1.3739 should cap”.
In addition, analysts at Westpac Global Strategy Group commented “Having reached our 1.37 one month target, there is no obvious barrier to a 1.38 handle. Confidence in treasuries has been shaken by the rolling cycle of US political dysfunction. The euro will be one beneficiary, with the ECB backstop ensuring default risk within the Eurozone is very low. Slow growth won’t worry EZ bond investors though multi-month should limit the scale of EUR gains”.