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4 Mar 2015
EUR/USD awaiting strong US payrolls to extend decline – KBC
FXStreet (Barcelona) - The KBC Bank Research Team, believes it would take a strong US payrolls and a substantial rise in USD bond yields to break EUR/USD lower towards 1.1098.
Key Quotes
“From a technical point of view, 1.1534 (reaction high)/1.1679 (reaction top) remains our first topside reference. A sustained break will be difficult.”
“On the downside, the 1.1098 (correction low) is again on the radar. For a sustained break of this level a substantial rise in US bond yields is needed.”
“The payrolls (Friday) are the next high profile US data. The dollar can stay well bid against a weak euro short-term, but confirmation from strong payrolls is needed to start a new USD up-leg beyond the cycle low in EUR/USD.”
“We maintain a EUR/USD sell-on-upticks approach but still hope for higher levels to add EUR/USD short exposure.”
Key Quotes
“From a technical point of view, 1.1534 (reaction high)/1.1679 (reaction top) remains our first topside reference. A sustained break will be difficult.”
“On the downside, the 1.1098 (correction low) is again on the radar. For a sustained break of this level a substantial rise in US bond yields is needed.”
“The payrolls (Friday) are the next high profile US data. The dollar can stay well bid against a weak euro short-term, but confirmation from strong payrolls is needed to start a new USD up-leg beyond the cycle low in EUR/USD.”
“We maintain a EUR/USD sell-on-upticks approach but still hope for higher levels to add EUR/USD short exposure.”