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28 Aug 2013
Flash: What’s the sentiment around the EUR/USD today? – Danske Bank and Commerzbank
FXstreet.com (Edinburgh) -The shared currency is now attempting a consolidation pattern between 1.3360 and 1.3380, as Syria continues to be on centre stage on Tuesday. The EUR/USD failed once again to follow through the upper band at 1.3400/20 overnight, deflating to session lows around 1.3360 after the European open.
Senior Analyst Christin Tuxen at Danske Bank commented “We would not be surprised to see EUR/USD give in to the safe-haven drive today and head lower as an attack on Syria is likely drawing closer. However, should this afternoon’s pending home sales reveal the marked drop in July that our economists look for as a result of the rise in mortgage rates, USD could stay soft”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested, “Should an unexpected rise above last week’s 1.3453 high be seen our view will be negated. In this case the 1.3500/20 region will be in focus…This is regarded as the last defence for the 1.3711 February peak. We do not favour such a strong rise, though, and believe that the currency pair is already topping out”.
Senior Analyst Christin Tuxen at Danske Bank commented “We would not be surprised to see EUR/USD give in to the safe-haven drive today and head lower as an attack on Syria is likely drawing closer. However, should this afternoon’s pending home sales reveal the marked drop in July that our economists look for as a result of the rise in mortgage rates, USD could stay soft”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested, “Should an unexpected rise above last week’s 1.3453 high be seen our view will be negated. In this case the 1.3500/20 region will be in focus…This is regarded as the last defence for the 1.3711 February peak. We do not favour such a strong rise, though, and believe that the currency pair is already topping out”.