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#1 10-06-2015 07:29:24

Admin & Trader
From: Paris - France
Registered: 21-12-2009
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EUR/USD: Westpac says macro + technical indicators point to risk of...

EUR/USD: Westpac says that macro and technical forecasts suggest a risk of a rally to 1.1450/1.1550

Westpac shares its macroeconomic and technical outlook for the EUR/USD, noting that short term pressure is pushing upward to 1.1450 / 1.1550.

"Macro: EUR/USD continues to evolve in a firm manner. But doesn't give up on the downside. Markets seem to be too optimistic about the risk of Greek default, and US retail sales seem set to match the more constructive growth signals such as housing sales, durable goods orders and non-agricultural jobs. Price action may be constructive, but the EUR/USD has been struggling to durably evolve above 1.13 for some time now."

"Models: Our entire signal range remains surprisingly bullish on the EUR/USD: its decline over the past year has reversed our valuation signals for a more constructive attitude. More robust data in recent months have reignited our EUR growth signal, while the region's external accounts remain healthy, maintaining our EUR current account's bullish momentum signal."

"Technical: The failure of a break below key support at the 1.0840/45 Fibonacci level in May has evolved into a tangible recovery. Monday's new closing highs emphasise a short-term upward risk towards the February/May highs at 1.1450 / 1.1550".

"Anything worth having is worth going for - all the way." - J.R. Ewing



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