26 Nov 2013
Flash: What lies ahead of the EUR/USD? – Commerzbank and UBS
FXstreet.com (Edinburgh) - After hitting session highs beyond 1.3570, the EUR/USD is now returning to the 1.3550 region despite the prevailing risk-on tone.
“Note that the market has recently eroded its 4 month uptrend and appears to be developing a potential rising wedge pattern. This will complete on a close below 1.3430 and target initially 1.3177, which is in close proximity to the 61.8% retracement at 1.3166”, suggested Karen Jones, Head of FICC Technical Anaysis at Commerzbank.
In addition, strategists at UBS remain bearish on the par, adding “with bearish conditions intact, any recovery will be limited to resistance at 1.3579. Support is at 1.3400, a break below this would expose 1.3293”.
“Note that the market has recently eroded its 4 month uptrend and appears to be developing a potential rising wedge pattern. This will complete on a close below 1.3430 and target initially 1.3177, which is in close proximity to the 61.8% retracement at 1.3166”, suggested Karen Jones, Head of FICC Technical Anaysis at Commerzbank.
In addition, strategists at UBS remain bearish on the par, adding “with bearish conditions intact, any recovery will be limited to resistance at 1.3579. Support is at 1.3400, a break below this would expose 1.3293”.