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12 Mar 2015
EUR/USD bearish below 1.0698 – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, reviewed today’s bullish attempt in the pair, although noted that a close below 1.0698 will keep the bearish bias intact.
Key Quotes
“The catalyst seems to be short covering as the market evaluates how the accelerated pace of USD appreciation will factor into next week’s Fed decision”.
“Fundamental data was mixed, with the Eurozone releasing a disappointing –0.1% m/m fall in industrial production. Country level inflation data came in at expectations, with Germany CPI up 0.9%m/m and 0.1%y/y and confirming France’s fall into deflation”.
In addition, Sutton argued the short-term technicals remain bearish “with all studies still warning of downside risk and today’s retracement seen as a chance for the RSI to climb out of oversold levels and for markets to catch their breath”.
“Today’s closing will be important, as long as it remains below yesterday’s 1.0698 open, the near‐term outlook will remain bearish”.
Key Quotes
“The catalyst seems to be short covering as the market evaluates how the accelerated pace of USD appreciation will factor into next week’s Fed decision”.
“Fundamental data was mixed, with the Eurozone releasing a disappointing –0.1% m/m fall in industrial production. Country level inflation data came in at expectations, with Germany CPI up 0.9%m/m and 0.1%y/y and confirming France’s fall into deflation”.
In addition, Sutton argued the short-term technicals remain bearish “with all studies still warning of downside risk and today’s retracement seen as a chance for the RSI to climb out of oversold levels and for markets to catch their breath”.
“Today’s closing will be important, as long as it remains below yesterday’s 1.0698 open, the near‐term outlook will remain bearish”.