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20 Apr 2015
EUR/USD risks a dip lower to mid 1.06 region – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, believe that there isn’t much scope for a near-term bounce in the euro, and a dip towards mid-1.06 area might be seen on a break below 1.0740/45.
Key Quotes
“Over the weekend, following the IMF meetings in Washington, ECB President Draghi reiterated his 2012 comment that it was “pointless to go short on the euro”.”
“Market participants may beg to differ, having ridden the 25% slide in the EUR seen over the past year or so but Draghi may be showing his market “nouse” by trying to give a heavily oversold and under-loved EUR a break with a little verbal support. It might work but investors are still liable to bid their time ahead of this Thursday’s Eurogroup meeting.”
“We doubt there is much scope for a EUR bounce in the near-term but price action does suggest that the sell-off in the EUR (and some of the EUR crosses) has paused for now.”
“In fact, after the EUR’s four day run higher, short-term technical signals are looking a little weak for EURUSD this morning again. Below short-term support at 1.0740/45, EURUSD risks dipping to the mid 1.06s again.”
Key Quotes
“Over the weekend, following the IMF meetings in Washington, ECB President Draghi reiterated his 2012 comment that it was “pointless to go short on the euro”.”
“Market participants may beg to differ, having ridden the 25% slide in the EUR seen over the past year or so but Draghi may be showing his market “nouse” by trying to give a heavily oversold and under-loved EUR a break with a little verbal support. It might work but investors are still liable to bid their time ahead of this Thursday’s Eurogroup meeting.”
“We doubt there is much scope for a EUR bounce in the near-term but price action does suggest that the sell-off in the EUR (and some of the EUR crosses) has paused for now.”
“In fact, after the EUR’s four day run higher, short-term technical signals are looking a little weak for EURUSD this morning again. Below short-term support at 1.0740/45, EURUSD risks dipping to the mid 1.06s again.”