: Will the EUR/USD sustain the upside? – Commerzbank and Danske Bank The sentiment surrounding the EUR/USD has improved greatly in the past sessions. The bull run was supported basically by the selling pressure in the greenback due to the increasing uncertainties regarding the US Government shutdown. The apathetic tone from the ECB meeting on Wednesday also left the door open for further upside, in combination to some sort of return to normalcy in the Italian political arena. Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested, “the market is immediately supported by an accelerated uptrend at 1.3535 and while above here we would allow for a retest of the 1.3670/1.3711 inter year pivot, where we would expect to see failure (December 2004 high and the February 2013 high)”. In addition, analyst Allan von Mehren at Danske Bank noted there are increasing chances fo the pair to keep advancing, based in the Fed ‘no-taper’, the US debt ceiling debate and shutdown negotiations, increasing long positions in EUR and better data from the euro area. “According to our short-term financial models this opens up the probability space on the upside in EUR/USD to 1.40 over the coming quarters”.
Posted on: Thu, 03 Oct 2013 09:31:49 +0000
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