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11 May 2015
EUR/USD remains a sell on upticks – KBC
FXStreet (Barcelona) - With the European bond yield climb halted and USD back on track after the NFP, the KBC Bank Research Team maintains a sell-on-upticks bias on EUR/USD.
Key Quotes
“Of late the risk-off sentiment in combination with higher core bond yields did hurt the dollar more than the euro. This pattern apparently came to an end on Thursday last week. The rise in European bond yields halted and this capped also the short squeeze of EUR/USD.”
“The payrolls were mixed, but the dollar remained well bid, especially against the euro. Last week we already indicated that we considered the 1.1392 correction top as a potential strong resistance.”
“This assumption looks confirmed by Friday’s price action. So, we start the week with a cautious sell-on-upticks bias for EUR/USD.”
“Later this week, markets will look out for confirmation of a gradual improvement in US economic activity after a poor Q1. The US retail sales (Wednesday) might be an important factor in this assessment”
Key Quotes
“Of late the risk-off sentiment in combination with higher core bond yields did hurt the dollar more than the euro. This pattern apparently came to an end on Thursday last week. The rise in European bond yields halted and this capped also the short squeeze of EUR/USD.”
“The payrolls were mixed, but the dollar remained well bid, especially against the euro. Last week we already indicated that we considered the 1.1392 correction top as a potential strong resistance.”
“This assumption looks confirmed by Friday’s price action. So, we start the week with a cautious sell-on-upticks bias for EUR/USD.”
“Later this week, markets will look out for confirmation of a gradual improvement in US economic activity after a poor Q1. The US retail sales (Wednesday) might be an important factor in this assessment”