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31 Mar 2014
What’s the sentiment around the EUR/USD today? – Danske Bank and Commerzbank
FXStreet (Edinburgh) - The single currency is trying to pick up pace on Monday, hovering over 1.3755/60 ahead of key EMU inflation figures.
“We think it is likely that the ECB might announce some easing measures in connection with its monetary policy meeting on Thursday… If we are right, further downside in EUR/USD is likely in the short term and consequently, we will probably have to revise down our 3M target of 1.42 as further ECB easing and a strong US labour market report indeed reduce the chance of a break above 1.40”, concluded Flemming Nielsen, Senior Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “Beyond a possible small rebound we look for losses to 1.3643, the end of February low and eventually the 1.3476 2014 low and 1.3467 the 55 MONTH ma. We have cloud support at 1.3685/46 and a 6 month support line cutting in at 1.3587”.
“We think it is likely that the ECB might announce some easing measures in connection with its monetary policy meeting on Thursday… If we are right, further downside in EUR/USD is likely in the short term and consequently, we will probably have to revise down our 3M target of 1.42 as further ECB easing and a strong US labour market report indeed reduce the chance of a break above 1.40”, concluded Flemming Nielsen, Senior Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “Beyond a possible small rebound we look for losses to 1.3643, the end of February low and eventually the 1.3476 2014 low and 1.3467 the 55 MONTH ma. We have cloud support at 1.3685/46 and a 6 month support line cutting in at 1.3587”.