12 May 2015
What’s the sentiment around EUR/USD today? – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - The single currency is trading on a firmer footing on Tuesday, pushing EUR/USD to test the vicinity of 1.1200 the figure.
“Although Greece has reportedly made a EUR750mn payment to the IMF ahead of schedule on Monday, expect sentiment towards the EUR to remain heavy with negotiations expected to go down to the line in June. With the pair failing to hold at 1.1200, risks may skewed towards a reassessment at 1.1100 before 1.1070”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested “We suspect that the correction higher that we have seen since March has ended – the intraday Elliott wave counts are negative, but we need more confirmation. Support at 1.1052 guards the 1.0903 55 day ma and the 1.0915 support line. A drop below here is needed to focus attention on the downside”.
“Although Greece has reportedly made a EUR750mn payment to the IMF ahead of schedule on Monday, expect sentiment towards the EUR to remain heavy with negotiations expected to go down to the line in June. With the pair failing to hold at 1.1200, risks may skewed towards a reassessment at 1.1100 before 1.1070”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested “We suspect that the correction higher that we have seen since March has ended – the intraday Elliott wave counts are negative, but we need more confirmation. Support at 1.1052 guards the 1.0903 55 day ma and the 1.0915 support line. A drop below here is needed to focus attention on the downside”.