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12 Jun 2013
Flash: What can we expect of the EUR/USD? – BTMU and Commerzbank
FXstreet.com (Barcelona) - The EUR/USD is now retreating to the boundaries of the key level at 1.3300 on Wednesday after hitting fresh multi-week highs around 1.3330 earlier. The pair remains isolated from the EMU data, with the movements in the emerging markets and bonds acting as the main catalysts.
According to Derek Hapenny, European Head of Global Markets Research at BTMU, “the emerging markets liquidation is helping not just the dollar but also the euro as carry positions are unwound. There’s not much fundamental justification for further gains and we maintain that this euro demand will peter out close to current levels”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented “The market is pushing hard into resistance at 1.3319/40 (25th February high and the 61.8% retracement). It is possible that this was an ‘a-b-c’ correction (wave 4) and this move higher is already complete and over”. The analyst added that in order to alleviate upside pressure, the market needs to close below 1.3230 (accelerated uptrend) and 1.3177 (Monday lows).
According to Derek Hapenny, European Head of Global Markets Research at BTMU, “the emerging markets liquidation is helping not just the dollar but also the euro as carry positions are unwound. There’s not much fundamental justification for further gains and we maintain that this euro demand will peter out close to current levels”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented “The market is pushing hard into resistance at 1.3319/40 (25th February high and the 61.8% retracement). It is possible that this was an ‘a-b-c’ correction (wave 4) and this move higher is already complete and over”. The analyst added that in order to alleviate upside pressure, the market needs to close below 1.3230 (accelerated uptrend) and 1.3177 (Monday lows).