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15 Jan 2015
EUR/USD still bearish – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes technicals suggest that the EUR/USD pair remains bearish with chances of further slides, further adding that 1.1640 might provide limited support to the pair.
Key Quotes
“On the back of the SNB decision, EUR collapsed briefly lower, briefly falling below 1.1600 (through our near term target of 1.1640) and to fresh 11 year lows. However since then it has retraced and is entering the North American session down 0.6%. The as expected Eurozone trade balance of €20bn, German 2014 GDP of 1.5% and Spanish CPI at –1.0% on headline and flat on core were ignored as markets faced the abandonment of the EURCHF floor. This decision is driving speculation over what policy action the ECB is likely to undertake on January 22nd.”
“EURUSD short‐term technicals: bearish—technical studies are bearish, all calling for further downside, even as the RSI flirts with oversold levels.”
“Support lies at the fresh lows of 1.1575, with 1.1640 still providing some limited support; resistance comes in at today’s open of 1.1789.”
Key Quotes
“On the back of the SNB decision, EUR collapsed briefly lower, briefly falling below 1.1600 (through our near term target of 1.1640) and to fresh 11 year lows. However since then it has retraced and is entering the North American session down 0.6%. The as expected Eurozone trade balance of €20bn, German 2014 GDP of 1.5% and Spanish CPI at –1.0% on headline and flat on core were ignored as markets faced the abandonment of the EURCHF floor. This decision is driving speculation over what policy action the ECB is likely to undertake on January 22nd.”
“EURUSD short‐term technicals: bearish—technical studies are bearish, all calling for further downside, even as the RSI flirts with oversold levels.”
“Support lies at the fresh lows of 1.1575, with 1.1640 still providing some limited support; resistance comes in at today’s open of 1.1789.”