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27 Feb 2015
What’s in store for EUR/USD today? – Danske Bank and Commerzbank
FXStreet (Edinburgh) - The single currency is trading just above the 1.1200 handle on Friday following the deep pullback on Thursday.
In the view of Sverre Holbek, Senior Analyst at Danske Bank, “EUR/USD moved sharply lower yesterday initially triggered by some hawkish comments from Fed’s James Bullard suggesting that the wording ‘patient’ should be taken out of the FOMC statement in March to provide optionality for the committee… Thus "patient" could be removed from the Fed statement soon and while Yellen has stressed that is only a necessary, but not sufficient, condition for hikes to arrive, we are on track for another round of USD strength ahead of the summer. We are still short EUR/USD with a 1.09 target”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has eroded the 1.1262 29th January low. This is negative price action and leaves attention on the 1.1098 recent low. The market is directly offered below the near term resistance line at 1.1408. Slightly longer term we look for losses to 1.0835, the 50% retracement of the entire move up from 1985”.
In the view of Sverre Holbek, Senior Analyst at Danske Bank, “EUR/USD moved sharply lower yesterday initially triggered by some hawkish comments from Fed’s James Bullard suggesting that the wording ‘patient’ should be taken out of the FOMC statement in March to provide optionality for the committee… Thus "patient" could be removed from the Fed statement soon and while Yellen has stressed that is only a necessary, but not sufficient, condition for hikes to arrive, we are on track for another round of USD strength ahead of the summer. We are still short EUR/USD with a 1.09 target”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has eroded the 1.1262 29th January low. This is negative price action and leaves attention on the 1.1098 recent low. The market is directly offered below the near term resistance line at 1.1408. Slightly longer term we look for losses to 1.0835, the 50% retracement of the entire move up from 1985”.