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26 Aug 2013
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and UBS
FXstreet.com (Edinburgh) -The single currency is trading on a softer tone against the greenback at the beginning of the week, testing lows in the area of 1.3375/70 ahead of the US calendar due later. The absence of events/results in the 17-nation bloc would leave the EUR/USD to the mercy of the risk trends, in a context dominated by the investors’ preference for safer assets so far.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, “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 1.3324 and a fall through last week’s 1.3298 low”.
Strategists Gareth Berry and Geoffrey Yu at UBS remain bullish on the pair, arguing, “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”.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, “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 1.3324 and a fall through last week’s 1.3298 low”.
Strategists Gareth Berry and Geoffrey Yu at UBS remain bullish on the pair, arguing, “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”.