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7 Mar 2014
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD is flat-lining in the area of fresh 2014 highs around 1.3860, boosted by yesterday’s ECB inaction and ahead of February’s US Payrolls.
In light of yesterday’s EUR’s advance, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has seen a massive acceleration higher which has eroded the 2008-2014 downtrend at 1.3826. Directly overhead lies the 1.3894 2013 high and the 1.3960/50% retracement of the sell off from the 2008 peak. We will need to see a close above here on a weekly basis to confirm a break higher”.
“We have already seen a broad appreciation of the euro – in particular EUR/USD has moved above 1.38 for the first time since December – and we will probably see further short-term support to the euro. In particular, we might see an unwinding of both speculative and hedging related short EUR/USD positions”, observed Morten Helt, Senior Analyst at Danske Bank.
In light of yesterday’s EUR’s advance, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has seen a massive acceleration higher which has eroded the 2008-2014 downtrend at 1.3826. Directly overhead lies the 1.3894 2013 high and the 1.3960/50% retracement of the sell off from the 2008 peak. We will need to see a close above here on a weekly basis to confirm a break higher”.
“We have already seen a broad appreciation of the euro – in particular EUR/USD has moved above 1.38 for the first time since December – and we will probably see further short-term support to the euro. In particular, we might see an unwinding of both speculative and hedging related short EUR/USD positions”, observed Morten Helt, Senior Analyst at Danske Bank.