Westpac: bearish on euro in the medium term
Wednesday, April 25, 2012 - 08:15
Analysts at Westpac Bank believe that the elections turmoil in the Netherlands, France and Greece will make the single currency breach its trading range to the downside and make it start to “unravel quietly, certainly through the first week of May.”
According to the bank, the current band EUR/USD is trapped in is “almost frustrating”. The specialists say that it seems that “here is a barrier, some sort of physical option structure in the market that's limiting downside through the $1.30 level.” However, euro shorts will mount and once the bears push the pair down through $1.31 and $1.30, downside momentum for EUR/USD will significantly increase. Westpac says that the possibility of euro’s slide to the levels around $1.25 in the second quarter is rather strong.
Chart. Daily EUR/USD
Westpac: bearish on euro in the medium term // FBS Markets Inc.
Wednesday, April 25, 2012 - 08:15
Analysts at Westpac Bank believe that the elections turmoil in the Netherlands, France and Greece will make the single currency breach its trading range to the downside and make it start to “unravel quietly, certainly through the first week of May.”
According to the bank, the current band EUR/USD is trapped in is “almost frustrating”. The specialists say that it seems that “here is a barrier, some sort of physical option structure in the market that's limiting downside through the $1.30 level.” However, euro shorts will mount and once the bears push the pair down through $1.31 and $1.30, downside momentum for EUR/USD will significantly increase. Westpac says that the possibility of euro’s slide to the levels around $1.25 in the second quarter is rather strong.
Chart. Daily EUR/USD
Westpac: bearish on euro in the medium term // FBS Markets Inc.