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26 Apr 2013
Forex Flash: EUR/USD remains hunkered down below 55D MA - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR/USD continues to remain hunkered down below its 55-day MA (1.3057) and the ongoing expectations of a more dovish ECB may prolong this malaise in the near term.
He feels that at this juncture, he expects the pair to attempt to resist undue downside pressure but remain bordered by the 200-day MA (1.2949) and the 55-day MA (1.3057) pending further cues. Looking to GBP/USD, he notes that while the better than expected GDP numbers are unlikely to fully erase expectations of further monetary accommodation by the BoE when the new Governor Carney takes the helm in the middle of the year, the pair may remain slightly tilted to the upside in the near term. He writes, “Yesterday’s price action we think may provide more incentive to test higher with immediate resistance expected towards 1.5500. On the same note, the EUR/GBP may also see scope to make a material attempt to break below the 0.8400 floor.”
He feels that at this juncture, he expects the pair to attempt to resist undue downside pressure but remain bordered by the 200-day MA (1.2949) and the 55-day MA (1.3057) pending further cues. Looking to GBP/USD, he notes that while the better than expected GDP numbers are unlikely to fully erase expectations of further monetary accommodation by the BoE when the new Governor Carney takes the helm in the middle of the year, the pair may remain slightly tilted to the upside in the near term. He writes, “Yesterday’s price action we think may provide more incentive to test higher with immediate resistance expected towards 1.5500. On the same note, the EUR/GBP may also see scope to make a material attempt to break below the 0.8400 floor.”