9 Oct 2013
Flash: Will the EUR/USD test 1.3500? – Commerzbank and OCBC Bank
FXstreet.com (Edinburgh) -The EUR/USD is quickly losing the grip on Wednesday, dropping to weekly lows around 1.3215/10 ahead of the FOMC minutes due in the European evening and amidst rising jitters on the US debt ceiling negotiations.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “continues to hold relatively steady and its daily RSI has diverged. This coupled with the close proximity of the 1.3670/1.3710 key resistance increases the risk of near term failure here. Intraday charts look more negative and are suggesting a slide back to 1.3460/53”.
“German Aug factory orders came in on the wrong side of expectations but we think the pair may find intrinsic support as the dollar remains on the defensive. On the top side, key resistance is expected only on approach of 1.3645 while the 1.3550 floor should prevail in the interim”, argued Emmanuel Ng, Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “continues to hold relatively steady and its daily RSI has diverged. This coupled with the close proximity of the 1.3670/1.3710 key resistance increases the risk of near term failure here. Intraday charts look more negative and are suggesting a slide back to 1.3460/53”.
“German Aug factory orders came in on the wrong side of expectations but we think the pair may find intrinsic support as the dollar remains on the defensive. On the top side, key resistance is expected only on approach of 1.3645 while the 1.3550 floor should prevail in the interim”, argued Emmanuel Ng, Strategist at OCBC Bank.