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28 Jan 2015
What’s the sentiment around EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - EUR/USD is giving away part of the weekly gains today, trading in the mid-1.1300s ahead of the FOMC gathering.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair’s “correction higher from 1.1098 is gaining traction. We note the complex divergence of the daily RSI. Nearby resistance is the downtrend at 1.1501, the intraday Elliott wave count is suggesting possible rebounds into the 1.1445/1.1655 band”.
In addition, Senior Analyst at Danske Bank Morten Helt suggested “We do not expect any significant changes to the FOMC statement tonight and given the latest sell-off in the USD this should not trigger any significant market reaction. In our view risks are fairly symmetrical. Fundamentally, we still look for a further decline in EUR/USD driven by divergent monetary policy and target the cross at 1.10 in 6M”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair’s “correction higher from 1.1098 is gaining traction. We note the complex divergence of the daily RSI. Nearby resistance is the downtrend at 1.1501, the intraday Elliott wave count is suggesting possible rebounds into the 1.1445/1.1655 band”.
In addition, Senior Analyst at Danske Bank Morten Helt suggested “We do not expect any significant changes to the FOMC statement tonight and given the latest sell-off in the USD this should not trigger any significant market reaction. In our view risks are fairly symmetrical. Fundamentally, we still look for a further decline in EUR/USD driven by divergent monetary policy and target the cross at 1.10 in 6M”.