7 Sep 2015
EUR/USD forecast: risk trends prevail – Danske Bank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD is trading on the softer side at the beginning of the week, giving away part of the recovery staged following US Payrolls on Friday.
“With the minor tweak to its QE program, the ECB has managed to (partially) refocus the market on the perceived policy dichotomy between itself and the Fed, especially in the wake of the latest NFP numbers. In the near term, upside potential for the pair may remain somewhat dulled as a result, with resistance expected at 1.1200 before the 200-day MA (1.1271). Sub-1.1150, expect the 55-day MA (1.1093) to lend further support”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
In addition, Chief Analyst at Danske Bank Kasper Kirkegaard noted “EUR/USD has rebounded after the initial drop on the non-farm payroll release Friday. We maintain the view that more downside is in store for the cross in the coming months and that relative monetary policy will be the driving force in sending the cross lower towards our 3M forecast of 1.10”.
“With the minor tweak to its QE program, the ECB has managed to (partially) refocus the market on the perceived policy dichotomy between itself and the Fed, especially in the wake of the latest NFP numbers. In the near term, upside potential for the pair may remain somewhat dulled as a result, with resistance expected at 1.1200 before the 200-day MA (1.1271). Sub-1.1150, expect the 55-day MA (1.1093) to lend further support”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
In addition, Chief Analyst at Danske Bank Kasper Kirkegaard noted “EUR/USD has rebounded after the initial drop on the non-farm payroll release Friday. We maintain the view that more downside is in store for the cross in the coming months and that relative monetary policy will be the driving force in sending the cross lower towards our 3M forecast of 1.10”.