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1 Nov 2013
Flash: EUR/USD in 2-week lows. Where to now? – Commerzbank and Danske Bank
FXstreet.com (Edinburgh) -The shared currency is intensifying its weekly pullback, pushing the EUR/USD to test 2-week lows in the boundaries of 1.3520 against the backdrop of mounting rumours pointing to an imminent action by the ECB.
In light of the recent sharp sell-off, Karen Jones, Head of FICC Technical Analysis argued, “Our attention has reverted to the 1.3472 mid October low and the 1.3430/20 4 month up channel and 38.2% retracement. Intraday rallies are expected to now remain capped by 1.3620/55. We view this as a significant turn for the market and below 1.3420 will introduce scope to 1.3104, the September low”.
In addition, Analyst Kasper Kirkegaard at Dasnke Bank suggested, “the ECB should be less willing to accept a de facto tightening of financial conditions with inflation at these levels. Hence, odds are that we have seen the peak in EUR/USD for 2013 and at least short-term risks have become two sided again”.
In light of the recent sharp sell-off, Karen Jones, Head of FICC Technical Analysis argued, “Our attention has reverted to the 1.3472 mid October low and the 1.3430/20 4 month up channel and 38.2% retracement. Intraday rallies are expected to now remain capped by 1.3620/55. We view this as a significant turn for the market and below 1.3420 will introduce scope to 1.3104, the September low”.
In addition, Analyst Kasper Kirkegaard at Dasnke Bank suggested, “the ECB should be less willing to accept a de facto tightening of financial conditions with inflation at these levels. Hence, odds are that we have seen the peak in EUR/USD for 2013 and at least short-term risks have become two sided again”.