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15 May 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD is accelerating its downside on Thursday after April’s CPI in the EMU came in as expected while the GBP figures for the first quarter missed forecasts.
“The 1.3687/43 seven month uptrend line, April low and end of February low still underpin for the time being. A fall below here will see the 2012-2014 uptrend at 1.3382 tested. Short term rallies are expected to find resistance around the 1.3770 late April low and along the breached support line, now resistance line, at 1.3806”, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.
In addition, Analyst Jens Pedersen at Danske Bank commented, “the soft rhetoric from the ECB has, in our view, eased medium- and long-term upside risks to EUR/USD significantly and thus the case for a cyclical downtrend in EUR/USD through relative rates still remains intact. In addition, the US recovery is expected to gain pace in coming quarters keeping Fed tapering on course”.
“The 1.3687/43 seven month uptrend line, April low and end of February low still underpin for the time being. A fall below here will see the 2012-2014 uptrend at 1.3382 tested. Short term rallies are expected to find resistance around the 1.3770 late April low and along the breached support line, now resistance line, at 1.3806”, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.
In addition, Analyst Jens Pedersen at Danske Bank commented, “the soft rhetoric from the ECB has, in our view, eased medium- and long-term upside risks to EUR/USD significantly and thus the case for a cyclical downtrend in EUR/USD through relative rates still remains intact. In addition, the US recovery is expected to gain pace in coming quarters keeping Fed tapering on course”.