Karen Jones, Head of FICC Technical Analysis at Commerzbank, comments “the market is well placed to challenge the 1.3173/80 resistance… The risk has increased that we will see a break through this resistance as we have a confirmed buy signal on the daily technical indicators”. The expert also assesses that further impulse would clear the path to 1.3487/1.3531.
Same point of view shares the research team at Australian Westpac, when informs “broad USD weakness should also help, leaving EUR/USD on track for 1.3170 initially, then 1.32-1.33 multi-day/week”.
Bolstering the aforementioned prospect, Flemming Nielsen, Senior Analyst at Danske Bank, stressed that “the number of short positions in EUR/USD was reduced from 72.6k to 53.5k, underlining that the FX markets have gained confidence in the euro”, according to information out of the CFTC.
Regarding the Greek front, somehow relegated to a secondary role at the moment, analyst Gareth Berry at UBS remarks that EU officials are optimistic about the last review of the country by the ‘troika’, assessing that a decision would most likely be during November. The Swiss bank remains bullish on the cross, citing “resistance is at 1.3140/72, a break above would be an important bullish development opening the way to 1.3284. Support lies at 1.2983/43”.