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14 Nov 2013
Flash: What lies ahead of the EUR/USD? – Commerzbank and UBS
FXstreet.com (Edinburgh) - The EUR/USD is now accelerating its intraday decline from overnight tops just beyond the 1.3500 handle, dragged lower by poor results from the flash EMU GDP figures for the third quarter (0.1% QoQ vs. 0.2% expected).
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted, “The market is on the defensive and expected to remain so in the short to medium term. Attention is going to remain on 1.3294, the 50% retracement of the move up from July. Below here will target the 1.3105/65 region, which represents the September low and the 61.8% retracement”.
In the same tone, strategists at UBS argued the pair “has recovered from 1.3293 and overnight made it back to resistance at 1.3501, the 38.2% retracement of the October-November sell-off, where fresh selling developed, reinforcing the bearish trending condition reflected by the MAC being below its zero line”. The experts also recommended “we suggest selling at 1.3460, looking for a break of 1.3293 over the coming days or weeks. Our target is 1.3175”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted, “The market is on the defensive and expected to remain so in the short to medium term. Attention is going to remain on 1.3294, the 50% retracement of the move up from July. Below here will target the 1.3105/65 region, which represents the September low and the 61.8% retracement”.
In the same tone, strategists at UBS argued the pair “has recovered from 1.3293 and overnight made it back to resistance at 1.3501, the 38.2% retracement of the October-November sell-off, where fresh selling developed, reinforcing the bearish trending condition reflected by the MAC being below its zero line”. The experts also recommended “we suggest selling at 1.3460, looking for a break of 1.3293 over the coming days or weeks. Our target is 1.3175”.