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27 Nov 2013
Flash: EUR/USD through 1.3600. Where to now? – Commerzbank and UBS
FXstreet.com (Edinburgh) - The bullish momentum around the single currency remains intact on Wednesday, pushing the EUR/USD back above the critical 1.3600 handle, posting fresh 4-week highs at the same time.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s “near term strength is viewed as corrective and we suspect that there is a potential rising wedge pattern on the chart, the top of the pattern is at 1.3613 and a close below 1.3440 will complete it. We look for the 1.3295/94 zone to be retested (current November low and the 50% retracement of the move up from July)”.
In addition, strategists at the Swiss bank UBS remain neutral on the pair, adding “the pair extended its recovery and is approaching strong resistance at 1.3627. A close above which would be positive, opening the way to the next major 1.3832. Support is at 1.3490”.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s “near term strength is viewed as corrective and we suspect that there is a potential rising wedge pattern on the chart, the top of the pattern is at 1.3613 and a close below 1.3440 will complete it. We look for the 1.3295/94 zone to be retested (current November low and the 50% retracement of the move up from July)”.
In addition, strategists at the Swiss bank UBS remain neutral on the pair, adding “the pair extended its recovery and is approaching strong resistance at 1.3627. A close above which would be positive, opening the way to the next major 1.3832. Support is at 1.3490”.