EUR/USD: top in place? – Danske Bank

Arne Rasmussen, Chief Analyst at Danske Bank, believes the pair could have placed a top in recent highs above the 1.2500 handle.

Key Quotes

“EUR/USD edged lower yesterday both before and after the FOMC meeting, which notably cemented the Fed’s confidence in the expansion and the need for more hikes”.

“As such, we now see tentative signs of the cross having established an upper end of its newfound trading range with good resistance around the 1.25 mark”.

“Today, one of the ECB’s most influential policy makers, Peter Praet, is speaking, and if he echos the ‘ECB sources’ story from earlier this week, i.e. that ending QE will happen in an ‘oh so gradual’ fashion, it should help to put a lid on the euro, at least temporarily”.