May 2014

Eurodollar futures: Gut check for shorts

Eurodollar futures still have upside potential to go says Michael Sacchitello at Stone & McCarthy. Last week, The COT report showed large speculator net short bets on 3-month Eurodollar futures at a record 1.56 million contracts, however, potential upside remains from a technical perspective.

Major EUR correction has begun

EUR/USD has finally reversed direction and is set for sharp declines, according to Walter Zimmermann at United-ICAP. The currency may find support at the trend line originating from the July 2012 low – around 1.3470 by the end of June. If this line is broken, the minimum target would be 1.2180.

Cable to retest 1.6904 after correction

Following the downward correction in GBP/USD, sterling is set to retest last week’s high at 1.6904, according to Max Knudsen at ADS Securities. Since the rally from March low, any dips have usually attracted buyers meaning that targets for the next rally are 1.6904, and beyond that, 1.6998.