FXStreet (Edinburgh) - The EUR/USD is posting meagre gains at the beginning of the week, amidst absence of data in the euro area.
“A negative bias will remain entrenched below the 1.3565 downtrend… A close below the 1.3385 is expected to act as a catalyst on the downside. It is expected to act as a trigger for a slide to the 1.3295November 2013 low en route to 1.3020/00, the 50% retracement of the move up from the 1.2042/July 2012 low”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
In addition, analysts at Westpac Global Strategy Group commented, “Probably the only real obstacle to ongoing euro weakness is the widespread ownership of the bearish euro theme. This week’s data is unlikely to fundamentally alter the picture of a Eurozone economy that has lost some recovery momentum. The latest balance of payments data (May) points to yet further underlying deterioration in what was a strong net capital inflow story. Any EUR/USD push back towards 1.35 should be met with heavy selling”.