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16 Mar 2015
What’s in store for EUR/USD today? – Danske Bank and Commerzbank
FXStreet (Edinburgh) - EUR/USD started the week with decent gains vs. the greenback, looking to pare some of the sharp losses from last week.
“Even though EUR/USD looks oversold both technically and according to our short-term financial models, we still expect it to maintain a downside momentum as EUR assets will likely continue to perform due the better economic outlook and due to the ‘hot potato effect’ of negative euro rates and excess liquidity driving investors to riskier assets”, suggested Morten Helt, Senior Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank commented, “There is some divergence on intraday indicators and very near term we would allow for a rally towards 1.0680/1.0710… The market will remain directly offered while capped by the accelerated downtrend at 1.0797”.
“Even though EUR/USD looks oversold both technically and according to our short-term financial models, we still expect it to maintain a downside momentum as EUR assets will likely continue to perform due the better economic outlook and due to the ‘hot potato effect’ of negative euro rates and excess liquidity driving investors to riskier assets”, suggested Morten Helt, Senior Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank commented, “There is some divergence on intraday indicators and very near term we would allow for a rally towards 1.0680/1.0710… The market will remain directly offered while capped by the accelerated downtrend at 1.0797”.