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25 May 2015
What’s the sentiment around EUR/USD? – OCBC Bank and UOB Group
FXStreet (Edinburgh) - The pair has broken below the psychological handle at 1.1000 and is looking to test multi-week lows near 1.0970.
In the view of Emmanuel Ng, FX Strategist at OCBC Bank, “Over the weekend, the Greek Interior Minister reiterated that a June 2015 debt repayment deadline would not be met barring a new deal with its creditors with the Finance Minister also calling for a compromise… As such, Greek-related news flow may continue to lubricate the downside for the pair in the near term. On the downside, look to the 55-day MA (1.0921) as the next significant pit stop”.
In addition, analysts at UOB Group noted EUR touched a high of 1.1208 last Friday before reversing quickly. The sharp drop from the top took out the major support at 1.1050 to reach a low of 1.1001. While the undertone is still weak, the down-move from the high is overstretched and any further weakness is likely limited to 1.0960. However, only a move back above 1.1080 would indicate that a temporary low is in place”.
In the view of Emmanuel Ng, FX Strategist at OCBC Bank, “Over the weekend, the Greek Interior Minister reiterated that a June 2015 debt repayment deadline would not be met barring a new deal with its creditors with the Finance Minister also calling for a compromise… As such, Greek-related news flow may continue to lubricate the downside for the pair in the near term. On the downside, look to the 55-day MA (1.0921) as the next significant pit stop”.
In addition, analysts at UOB Group noted EUR touched a high of 1.1208 last Friday before reversing quickly. The sharp drop from the top took out the major support at 1.1050 to reach a low of 1.1001. While the undertone is still weak, the down-move from the high is overstretched and any further weakness is likely limited to 1.0960. However, only a move back above 1.1080 would indicate that a temporary low is in place”.