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23 Sep 2013
Flash: Mixed aftertaste after German elections. PMI ahead. What about the EUR/USD? – Commerzbank and UBS
FXstreet.com (Edinburgh) -The single currency continues to fade the initial and expected spike after the opening bell in Asia, as markets briefly celebrated Merkel’s victory on Sunday’s elections. Better Chinese data from the manufacturing sector also added to the upbeat sentiment.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the EUR/USD “spent Thursday and Friday consolidating its gains following its break above the 1.3453 August high and the 1.3520 February high – these are likely to now act as support. This move higher has introduced scope for an attempt on the 1.3711 January high. A move towards and failure ahead of here remains our favoured scenario”.
In addition, strategists Gareth Berry and Geoffrey Yu at UBS commented, “Resistance is at 1.6179, a break above which would open the way to 1.6381. Any downside will be correction, with support at 1.5883”. It is worth noting that the Swiss bank holds a bullish outlook on the pair.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the EUR/USD “spent Thursday and Friday consolidating its gains following its break above the 1.3453 August high and the 1.3520 February high – these are likely to now act as support. This move higher has introduced scope for an attempt on the 1.3711 January high. A move towards and failure ahead of here remains our favoured scenario”.
In addition, strategists Gareth Berry and Geoffrey Yu at UBS commented, “Resistance is at 1.6179, a break above which would open the way to 1.6381. Any downside will be correction, with support at 1.5883”. It is worth noting that the Swiss bank holds a bullish outlook on the pair.