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12 Feb 2014
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Scotiabank
FXStreet (Edinburgh) - The single currency is trading in the lower band of the weekly range against the greenback so far, with the EUR/USD still unable to take advantage of the risk-on context after the Chinese data and Yellen’s speech.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “has seen very little follow through following its breach of its short term downtrend, but also has not done enough to alleviate upside pressure. So for now there remains scope to re-test the 1.3740/35 recent high and Fibonacci retracement”.
“As President Draghi has failed to turn more dovish and the ECB sits in a wait-and-see mode; the near term risks for EUR have shifted temporarily to the upside. The release of GDP on Friday and CPI on February 24th will be two key inputs for the ECB and the path of the EUR… Support lies at the 100-day ma at 1.3611 and resistance lies at 1.3739”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “has seen very little follow through following its breach of its short term downtrend, but also has not done enough to alleviate upside pressure. So for now there remains scope to re-test the 1.3740/35 recent high and Fibonacci retracement”.
“As President Draghi has failed to turn more dovish and the ECB sits in a wait-and-see mode; the near term risks for EUR have shifted temporarily to the upside. The release of GDP on Friday and CPI on February 24th will be two key inputs for the ECB and the path of the EUR… Support lies at the 100-day ma at 1.3611 and resistance lies at 1.3739”.