20 Aug 2015
EUR/USD forecasts: firmer post-FOMC – Commerzbank and BNP
FXStreet (Edinburgh) - EUR/USD has managed to regain the 1.1100 handle following Wednesday’s dovish tone from the FOMC minutes.
Analysts at BNP have noted “EURUSD squeezed back above 1.11 in the aftermath of the FOMC minutes while EURGBP has now retraced most of its post-CPI decline. We remain short EURUSD via longer-term options structures but acknowledge that the EUR may continue getting some near-term support in an environment of weak risk sentiment”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “has bounced from the 20 day ma at 1.1025. The market is again focussed on the 1.1216 July high - the Elliott wave count is still suggesting scope for a move towards the 1.1342 200 day ma. If seen, the 1.1342/1.1468 resistance area is expected to provoke failure and provoke resumption its longer term down trend”.
Analysts at BNP have noted “EURUSD squeezed back above 1.11 in the aftermath of the FOMC minutes while EURGBP has now retraced most of its post-CPI decline. We remain short EURUSD via longer-term options structures but acknowledge that the EUR may continue getting some near-term support in an environment of weak risk sentiment”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “has bounced from the 20 day ma at 1.1025. The market is again focussed on the 1.1216 July high - the Elliott wave count is still suggesting scope for a move towards the 1.1342 200 day ma. If seen, the 1.1342/1.1468 resistance area is expected to provoke failure and provoke resumption its longer term down trend”.