13 Jul 2015
EUR/USD forecast: waiting for the EU – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD has almost recovered the ground lost on the Asian open today, trading around 1.1140 pending news from the EU meeting.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “saw an aggressive rally to end the week. This places it firmly back within the 1.15-1.08 band. After such a directional move on Friday we can only assume potential test the top of the range at 1.1440/1.1534 – if seen, this has produced numerous failures and is again expected to hold the topside. Initial resistance lies at 1.1280/1.1320”.
“Tune in to ECB Draghi’s press conference post ECB meeting on Thursday but expect markets to continue to be strung along by Greek-related headlines this week. On the CFTC front, net leveraged EUR shorts were increased in the latest week and we prefer to fade any upticks towards 1.1200 in the interim, preferring a bias towards the 100-daty MA (1.1025)”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “saw an aggressive rally to end the week. This places it firmly back within the 1.15-1.08 band. After such a directional move on Friday we can only assume potential test the top of the range at 1.1440/1.1534 – if seen, this has produced numerous failures and is again expected to hold the topside. Initial resistance lies at 1.1280/1.1320”.
“Tune in to ECB Draghi’s press conference post ECB meeting on Thursday but expect markets to continue to be strung along by Greek-related headlines this week. On the CFTC front, net leveraged EUR shorts were increased in the latest week and we prefer to fade any upticks towards 1.1200 in the interim, preferring a bias towards the 100-daty MA (1.1025)”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.