7 Jul 2015
EUR/USD forecast: focus on EU Summit – Commerzbank and UOB Group
FXStreet (Edinburgh) - EUR/USD is extending its weekly downside so far, hovering over 1.1030 ahead of the critical EU Leaders Summit due later today.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued “The market is holding over last weeks low at 1.0950 but this looks vulnerable to us. Our stance is neutral to negative – we have initial resistance at 1.1121 (resistance line), 1.1280/1.1325 (highs last week) and above here lies dense resistance at 1.1440/1.1534, the recent highs. Intraday charts are suggesting that we allow for losses to 1.0820”.
In addition, analysts at UOB Group noted “The immediate downward pressure has eased with the strong overnight rebound. While further EUR weakness will not be surprising in the coming days, the current price action suggests choppy trading within a broad range is likely for today. Expected range; 1.1000/1.1100”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued “The market is holding over last weeks low at 1.0950 but this looks vulnerable to us. Our stance is neutral to negative – we have initial resistance at 1.1121 (resistance line), 1.1280/1.1325 (highs last week) and above here lies dense resistance at 1.1440/1.1534, the recent highs. Intraday charts are suggesting that we allow for losses to 1.0820”.
In addition, analysts at UOB Group noted “The immediate downward pressure has eased with the strong overnight rebound. While further EUR weakness will not be surprising in the coming days, the current price action suggests choppy trading within a broad range is likely for today. Expected range; 1.1000/1.1100”.