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20 Apr 2015
What’s in store for EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The single currency has started the week on a softer tone vs. the greenback, with EUR/USD navigating the area of 1.0780 so far.
“While EUR/USD has moved a bit higher over the past week, we believe that the next leg down will come soon as the US surprise index turns higher and it becomes clearer that a Fed hike is not very far away. We still look for EUR/USD to go below parity on a six month horizon”, commented analysts at Danske Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “correction higher has reached its 5 month resistance line, this is located at 1.0842 currently. While capped here, an immediate downside bias will remain in place and the risk remains for a retest of the 1.0520/1.0457 recent lows. Loss of 1.0650 should be enough to refocus on the downside”.
“While EUR/USD has moved a bit higher over the past week, we believe that the next leg down will come soon as the US surprise index turns higher and it becomes clearer that a Fed hike is not very far away. We still look for EUR/USD to go below parity on a six month horizon”, commented analysts at Danske Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “correction higher has reached its 5 month resistance line, this is located at 1.0842 currently. While capped here, an immediate downside bias will remain in place and the risk remains for a retest of the 1.0520/1.0457 recent lows. Loss of 1.0650 should be enough to refocus on the downside”.