EUR/USD with Mark Jensen
By Mark Jensen
Last week EUR/USD met resistance at $1.2790. Then the $1.2600 area and the bottom of the H4 Ichimoku Cloud acted as support, and the new week started positively for euro. The next support is located at $1.2570 (Sep. 30 low).
Analysts at SEB Bank point out that the pair has made a 3-wave correction down seen on H1 and is now ready to move higher, and the narrowing of US/Germany bond spreads help. In their view, the move above $1.2715 will open the way to $1.2800.
Yet, the sellers may be quick to use the euro’s recovery to open new short positions. Morgan Stanley and Credit Suisse have placed sell limit orders today: entry at $1.2800 with target at $1.2400 and stop at $1.2970; entry at $1.2780 with target at $1.2510 and stop at $1.2820. Note that Germany is due to release ZEW economic sentiment index at 09:00 GMT tomorrow, and a decline from 6.9 to 0.2 is expected.