12 Aug 2015
EUR/USD forecast: focus on China – Commerzbank and JP Morgan
FXStreet (Edinburgh) - EUR/USD has returned to the upper-1.1000s following a knee-jerk to session lows in the 1.1020 area following another lower fixing in the Chinese Yuan.
According to Axel Rudolph, Senior Technical Analysis at Commerzbank, the pair “sliced through the three month resistance line at 1.1030 and thus has the 1.1114/29 late July highs in its sights. Around these levels and below the 1.1216 July peak we expect EUR/USD to falter, though”.
In addition, Strategist at JPM Asia Satoshi Hozumi argued “For EURUSD, I think 1.1120 topside resistance is more of a risk now as compared to 1.0800 given that demand for EUR crosses may increase should EUR/CNH become a factor and we see accelerated CNH hedging from corporates given how the dynamic has changed as volatility increases”.
According to Axel Rudolph, Senior Technical Analysis at Commerzbank, the pair “sliced through the three month resistance line at 1.1030 and thus has the 1.1114/29 late July highs in its sights. Around these levels and below the 1.1216 July peak we expect EUR/USD to falter, though”.
In addition, Strategist at JPM Asia Satoshi Hozumi argued “For EURUSD, I think 1.1120 topside resistance is more of a risk now as compared to 1.0800 given that demand for EUR crosses may increase should EUR/CNH become a factor and we see accelerated CNH hedging from corporates given how the dynamic has changed as volatility increases”.