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1 Aug 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - The EUR/USD is seeing a recovery attempt to the 1.3400 handle today, despite the softer tone from the final manufacturing PMIs in Euroland and ahead of July’s Payrolls.
“We are waiting for a rebound to reinstate shorts and are not willing to chase this lower as momentum indicators remain in oversold territory. Nonetheless following the demise of the 2 month uptrend we remain in sell the rally mode, and a negative bias will remain entrenched below the 1.3535 2 month downtrend”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, FX Strategist Emmanuel Ng at OCBC Bank, suggested, “Note that the pair has leaked below 1.3400 this week and a sweater may be in order for EUR bulls as the balance of risks emanating from the US/EZ headline flow (ECB meeting next Thursday) may continue to guide the pair towards the 1.3300 neighborhood in the coming sessions”.
“We are waiting for a rebound to reinstate shorts and are not willing to chase this lower as momentum indicators remain in oversold territory. Nonetheless following the demise of the 2 month uptrend we remain in sell the rally mode, and a negative bias will remain entrenched below the 1.3535 2 month downtrend”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, FX Strategist Emmanuel Ng at OCBC Bank, suggested, “Note that the pair has leaked below 1.3400 this week and a sweater may be in order for EUR bulls as the balance of risks emanating from the US/EZ headline flow (ECB meeting next Thursday) may continue to guide the pair towards the 1.3300 neighborhood in the coming sessions”.