EUR/USD: analysts’ comments
Commerzbank: “The $1.3300 region could also be reached but around it another down leg should be made. We still look for a slide to $1.3020 and then $1.2904. These are the 61.8% and the 78.6% retracements of the move up from July, en route to the $1.2755 July low. Only an unexpected rise above the August $1.3453 high will allow gains to the $1.3500/20 region. This is not our favored view and we believe that the currency pair will see another leg lower towards $1.3050/25 instead.”
SEB: “Even though the initial attempt lower, breaking below $1.3276/82 was surprisingly reversed for a second test of the 61.8% Fibo resistance of the decline from August, $1.3321, we are still holding below the resistance. Several outcomes remain possible from here (flat consolidation, double top and more) so basically needs either a sustained (beware if we spike) break above $1.3325 or breaking below yesterday’s low point, $1.3256”.
JP Morgan: “Selling into $1.3330 stop loss price action (as some weak intraday EUR and EUR/JPY stops are clustered) but take the cash off the table below $1.3280.”