27 Jan 2015
Euro likely to consolidate in the near-term – Westpac
FXStreet (Barcelona) - The Research Team at Westpac expects EUR/USD might consolidate in the near-term, but the longer-term view still stands bearish for the single currency.
Key Quotes
“Despite the modest relief rally post the Greek election, EUR should remain on the back foot. Eurozone CPI is unlikely to carry the same punch it normally delivers following the ECB’s QE announcement but it won’t do EUR any favours either, with the advance Jan read likely to print on the soft side as energy prices continue to depress the headline rate.”
“EUR may well see a further brief bout of position squaring now the ECB announcement is out the way, but suspect sellers will be lurking in the 1.15/1.16 zone. Multi week risks remain skewed to the downside. We remain short from 1.2425.“
“Technical: Long term downtrend remains unquestionable, however short/ medium term momentum is showing some cracks. Likely consolidation in the near term.”
Key Quotes
“Despite the modest relief rally post the Greek election, EUR should remain on the back foot. Eurozone CPI is unlikely to carry the same punch it normally delivers following the ECB’s QE announcement but it won’t do EUR any favours either, with the advance Jan read likely to print on the soft side as energy prices continue to depress the headline rate.”
“EUR may well see a further brief bout of position squaring now the ECB announcement is out the way, but suspect sellers will be lurking in the 1.15/1.16 zone. Multi week risks remain skewed to the downside. We remain short from 1.2425.“
“Technical: Long term downtrend remains unquestionable, however short/ medium term momentum is showing some cracks. Likely consolidation in the near term.”