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10 Mar 2014
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Westpac
FXStreet (Edinburgh) - The EUR/USD is trading on a good mood, hovering over the key 1.3900 handle ahead of the Sentix index in the euro area (14.0 exp.).
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair “is getting ever closer to the 1.3960 50% retracement of the sell-off from the 2008 peak, though. We will need to see a close above here on a weekly basis to confirm a break higher… For now the market is bid and will remain so while above the 1.3718 short term support line”.
In addition, analysts at Westpac Global Strategy Group noted “relative data momentum should start to turn towards the US, leaving us inclined to sell in the mid-1.39s with a stop above 1.4050. Key resistance 1.3960. Ukraine remains a wild card, with Sunday’s Crimea referendum likely to intensify political and ethnic divisions. Any renewed market attention on the region seems likely to prove EUR-negative”.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair “is getting ever closer to the 1.3960 50% retracement of the sell-off from the 2008 peak, though. We will need to see a close above here on a weekly basis to confirm a break higher… For now the market is bid and will remain so while above the 1.3718 short term support line”.
In addition, analysts at Westpac Global Strategy Group noted “relative data momentum should start to turn towards the US, leaving us inclined to sell in the mid-1.39s with a stop above 1.4050. Key resistance 1.3960. Ukraine remains a wild card, with Sunday’s Crimea referendum likely to intensify political and ethnic divisions. Any renewed market attention on the region seems likely to prove EUR-negative”.