25 Aug 2015
EUR/USD forecast: focus still on EM – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD has returned to the mid-1.1500s after hitting 5-month tops above 1.1700 the figure on Monday, with attention to the German IFO and events in the EM space.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has reached the 55 week ma at 1.1700, the 2014- 2015 downtrend at 1.1704 and the top of the 5 month channel at 1.1721 today. We view this as a huge a-b-c correction and continue to look for signs of failure. Dips should find support at 1.1440, 1.1328 ahead of the 1.1098 support line”.
In addition, FX Strategist at OCBC Bank Emmanuel Ng, suggested “Today, look to the ECB’s appearances by Constancio and Praet for further cues with the pair expected to remain supported on cited hedge and EUR-cross adjustments. In the interim, the 200-day MA (1.1328) may now function as a conspicuous support, with the psychological 1.1500 level also expected to cushion”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has reached the 55 week ma at 1.1700, the 2014- 2015 downtrend at 1.1704 and the top of the 5 month channel at 1.1721 today. We view this as a huge a-b-c correction and continue to look for signs of failure. Dips should find support at 1.1440, 1.1328 ahead of the 1.1098 support line”.
In addition, FX Strategist at OCBC Bank Emmanuel Ng, suggested “Today, look to the ECB’s appearances by Constancio and Praet for further cues with the pair expected to remain supported on cited hedge and EUR-cross adjustments. In the interim, the 200-day MA (1.1328) may now function as a conspicuous support, with the psychological 1.1500 level also expected to cushion”.