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26 Feb 2013
Forex Flash: EUR/USD may remain under near term bearish pressure - OCBC Bank
Emmanuel Ng of OCBC Bank notes that with the pair violating technical support levels, EUR/USD may remain under downside pressure in the near term.
He writes, “Notably a sustained breach of the 1.3058 Fibo support would go significantly nullify the upside bias established since November 2012.” In essence, he feels that the markets will be on the lookout for Italian political news flow intra-day and any indications of a compromise within the parties in the Lower House may grant the pair interim support.
Looking to GBP/USD he notes that the BoE´s King speech this morning has added to downward pressure. In the near term he writes, “Bearish sentiment towards the GBP has been aggravated by the latest rating downgrade late last Friday and expect the pair hover tentatively around the 1.5200 area with risk-reward still expected to be tilted to the downside.”
He writes, “Notably a sustained breach of the 1.3058 Fibo support would go significantly nullify the upside bias established since November 2012.” In essence, he feels that the markets will be on the lookout for Italian political news flow intra-day and any indications of a compromise within the parties in the Lower House may grant the pair interim support.
Looking to GBP/USD he notes that the BoE´s King speech this morning has added to downward pressure. In the near term he writes, “Bearish sentiment towards the GBP has been aggravated by the latest rating downgrade late last Friday and expect the pair hover tentatively around the 1.5200 area with risk-reward still expected to be tilted to the downside.”