EUR/USD looking for direction – Danske Bank

Analyst at Danske Bank Mathias Mogensen sees the pair should start looking for direction in the near term.

Key Quotes

“EUR/USD stayed below the 1.25 mark on Friday as Trump’s Davos speech proved a non –event”.

“A new trading range of the cross has yet to be established after the recent rally and we probably need to get past the busy week ahead with key data releases on either side of the Atlantic and the FOMC meeting on Wednesday to see the cross settle firmly; for now, resistance remains at 1.2537 (25 Jan high) and support at 1.2323 (17 Jan high)”.

“This week, we would particularly keep an eye on Trump’s state of the union address on Tuesday as this could hint at whether the US will pursue the ‘trade war’ agenda further. Irrespective of the US administration’s desired dollar direction, we think USD is going to be haunted by a widening broad basic balance-of-payments deficit over the medium term”.