21 Jan 2014
Flash: What’s the sentiment around the EUR/USD today? - Commerzbank and BTMU
FXstreet.com (Edinburgh) - The EUR/USD remains submerged into the red territory on Tuesday, ahead of the key ZEW in Germany and the EMU. Prior surveys expect the indicator to improve during January, limiting the current downside.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “is sitting on its 4 month support line, today at 1.3520 – this is holding on a closing basis and we would allow for a small rebound. Failure here should be enough to trigger the next leg lower. We continue to look for the market to come under pressure and target 1.3348/1.3295 (recent low, Fibo and 200 day ma)”.
On the other side, Currency Analyst Lee Hardman at BTMU commented “Economic growth in the euro-zone is also expected to strengthen further in the year ahead although remain more modest, and still not fast enough to significantly reduce the elevated amount of excess capacity in the euro-zone which is weighing down upon inflation. The release today of the latest ZEW survey for January is expected to reveal that the German economy has likely gained further upward momentum early in 2014 providing modest support for the euro”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “is sitting on its 4 month support line, today at 1.3520 – this is holding on a closing basis and we would allow for a small rebound. Failure here should be enough to trigger the next leg lower. We continue to look for the market to come under pressure and target 1.3348/1.3295 (recent low, Fibo and 200 day ma)”.
On the other side, Currency Analyst Lee Hardman at BTMU commented “Economic growth in the euro-zone is also expected to strengthen further in the year ahead although remain more modest, and still not fast enough to significantly reduce the elevated amount of excess capacity in the euro-zone which is weighing down upon inflation. The release today of the latest ZEW survey for January is expected to reveal that the German economy has likely gained further upward momentum early in 2014 providing modest support for the euro”.