Forex Flash: EUR/USD tests 1.3100 with domestic concerns discarded - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR/USD tested the 1.3100 ceiling on Tuesday with domestic Eurozone concerns relegated to the background and as investor sentiment remained benign.

To this end, he believes that any ability to stay afloat above 1.3000 near term may see an eventual test towards the 55-day MA (1.3153) and then 1.3340. Moving to GBP/USD, he adds that the pair popped back above 1.5300 on Tuesday as better looking industrial output numbers aided the pair while the firmer EUR/USD also lent additional support. He writes, “We stay constructive on the GBP/USD in the interim as the pair continues to test the 55-day MA (1.5322). Note that a sustained breach on the upside may lead the pair towards the 1.5470 area.”