Commentary from the bank’s chief analyst Valtteri Ahti earlier in the day
He says that the pair still has room for extra gains as the market continues to assess the probable ECB monetary policy normalisation.
“EUR crosses generally bid yesterday after the ECB sources story that focus is shifting to controlling rate expectations as QE is set to end, and that the ECB is satisfied with current market pricing”, Ahti argues.
Adding that the latter is seen as a hawkish signal in his view, given what he sees as a “somewhat aggressive pricing of a first rate hike presently”.
He ends with saying that he would not be surprised “to see the EUR rally extend in coming days, albeit it is likely to require more backing from either side for EUR/USD to break the 1.2555 support level (16 February high)”.
Well, gotta wonder if the fall below the 100 and 200-hour MAs for the pair in the last hour is one that is surprising to him.
But on a similar note, the daily chart is where I view that you can have the most clarity in the pair at the moment and it’s still trading within a tight range/wedge.