23 Aug 2013
Flash: What to expect from EUR/USD - UBS and Commerzbank
FXstreet.com (Barcelona) - EUR/USD looks to be approaching resistance ahead, with analysts split over whether the medium term outlook showing a top forming or meerly representing a near term pull back ahead of further gains.
Axel Rusolph of Commerzbank comments, “The negative divergence seen between the daily RSI and the EUR/USD current August high at 1.3453 points to a top being formed. Confirmation of this would be a drop through the steep two month support line at 1.3307 and a fall through Tuesday’s 1.3323 low. Only a drop through the next lower 1.3208/1.3188 support area will mean that a significant top has indeed been made.”
Gareth berry and Geoffrey Yu of UBS are bullish on the pair, believing, “The pair is under correction having tested the important resistance at 1.3417. Support is at 1.3298 ahead of 1.3206. Resistance is at 1.3452 ahead of 1.3520.”
Axel Rusolph of Commerzbank comments, “The negative divergence seen between the daily RSI and the EUR/USD current August high at 1.3453 points to a top being formed. Confirmation of this would be a drop through the steep two month support line at 1.3307 and a fall through Tuesday’s 1.3323 low. Only a drop through the next lower 1.3208/1.3188 support area will mean that a significant top has indeed been made.”
Gareth berry and Geoffrey Yu of UBS are bullish on the pair, believing, “The pair is under correction having tested the important resistance at 1.3417. Support is at 1.3298 ahead of 1.3206. Resistance is at 1.3452 ahead of 1.3520.”