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21 May 2013
Flash: EUR/USD dominated by risk premium while GBP/USD stays capped - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that Eurozone risk premiums continue to compress and this may facilitate further EUR inroads against the greenback if the broad dollar continue to capitulate.
He sees immediate resistance is expected towards 1.2900 before 1.2940/50 while support is seen towards the recent low around 1.2800 and then 1.2775. Looking to GBP/USD, he notes that the pair continues to be capped by its 55-day MA (1.5254) despite the USD pullback on Monday and the pound may continue to remain under the shadow of a supported dollar in the coming sessions. He writes, “In the current environment however, markets may be looking to fade further strong upticks in the GBP/USD, with the next visible support seen at 1.5160.”
He sees immediate resistance is expected towards 1.2900 before 1.2940/50 while support is seen towards the recent low around 1.2800 and then 1.2775. Looking to GBP/USD, he notes that the pair continues to be capped by its 55-day MA (1.5254) despite the USD pullback on Monday and the pound may continue to remain under the shadow of a supported dollar in the coming sessions. He writes, “In the current environment however, markets may be looking to fade further strong upticks in the GBP/USD, with the next visible support seen at 1.5160.”