28 Jan 2016
EUR/USD forecast: focus on US data – Commerzbank and Scotiabank
FXStreet (Edinburgh) - EUR/USD has left behind recent post-FOMC highs near 1.0920, and is now easing to the 1.0870 region pending results from German CPI and the US docket.
Axel Rudolph, Senior Technical Analyst at Commerzbank, noted spot “needs to slip through its 1.0776 January 21 low for another down leg to the current January low at 1.0711 and below to be made”.
Furthermore, FX Strategist at Scotiabank Eric Theoret added “trend signals are remarkably muted and momentum indicators are neutral. EUR is trading in line with its 9, 21, and 50 day MA’s… The post-ECB range from December underscores the importance of support around the 61.8% Fibo at 1.0729 and more recently the 50% retracement at 1.0792. We note the risk of a full retracement to the Dec 15 high above 1.1000”.
Axel Rudolph, Senior Technical Analyst at Commerzbank, noted spot “needs to slip through its 1.0776 January 21 low for another down leg to the current January low at 1.0711 and below to be made”.
Furthermore, FX Strategist at Scotiabank Eric Theoret added “trend signals are remarkably muted and momentum indicators are neutral. EUR is trading in line with its 9, 21, and 50 day MA’s… The post-ECB range from December underscores the importance of support around the 61.8% Fibo at 1.0729 and more recently the 50% retracement at 1.0792. We note the risk of a full retracement to the Dec 15 high above 1.1000”.