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25 Apr 2013
Forex Flash: ECB rate cut expectations may overhang EUR/USD - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank feels that going forward, the the overhang from expectations of a further rate cut from the ECB may temper excessive EUR upside in the near term although he also notes that several ECB officials have been seeking to downplay the prospect of further aggressive easing.
He notes that in the near term, investors should expect the pair to attempt to base build near the 1.3000 area with subsequent support expected at the 200-day MA (1.2945) while the 55-day MA (1.3064) is expected to provide an initial cap. Moving to AUD/USD, he adds that the softer than expected Q1 PI numbers out of Australia saw AUD/USD dip briefly on Wednesday before improving global risk appetite levels buoyed the pair higher again. He writes, “For today, the antipodeans may range trade during Asian hours with both markets closed for ANZAC day. The nearest support level of interest is expected towards 1.0250 and then 1.0200 while the 55-day MA (1.0346) may continue to serve as a multi session resistance.”
He notes that in the near term, investors should expect the pair to attempt to base build near the 1.3000 area with subsequent support expected at the 200-day MA (1.2945) while the 55-day MA (1.3064) is expected to provide an initial cap. Moving to AUD/USD, he adds that the softer than expected Q1 PI numbers out of Australia saw AUD/USD dip briefly on Wednesday before improving global risk appetite levels buoyed the pair higher again. He writes, “For today, the antipodeans may range trade during Asian hours with both markets closed for ANZAC day. The nearest support level of interest is expected towards 1.0250 and then 1.0200 while the 55-day MA (1.0346) may continue to serve as a multi session resistance.”