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13 Jan 2016
EUR/USD forecast: Fedspeak in the limelight – Commerzbank and UOB
FXStreet (Edinburgh) - EUR/USD is navigating the lower bound of the weekly range in the low-1.0800s so far, amidst a renewed buying interest surrounding the US dollar.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “eased back only slightly yesterday and scope remains for a probe into tougher resistance at 1.10/1.1060 – recent highs and the 200 day ma and these should act as an effective near term ceiling. Key resistance remains the 1.1062/91 2014-2016 downtrend and 55 week ma and we view the market as bearish while capped here. Our target remains the 1.0523 recent low”.
Furthermore, FX Strategists at UOB Group added “the recent high of 1.0968 could be the extent of the corrective rebound. While downward momentum is picking up again, EUR has to break clearly below 1.0750 to indicate the start of a fresh down-leg. In the meanwhile, we prefer to hold a neutral view”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “eased back only slightly yesterday and scope remains for a probe into tougher resistance at 1.10/1.1060 – recent highs and the 200 day ma and these should act as an effective near term ceiling. Key resistance remains the 1.1062/91 2014-2016 downtrend and 55 week ma and we view the market as bearish while capped here. Our target remains the 1.0523 recent low”.
Furthermore, FX Strategists at UOB Group added “the recent high of 1.0968 could be the extent of the corrective rebound. While downward momentum is picking up again, EUR has to break clearly below 1.0750 to indicate the start of a fresh down-leg. In the meanwhile, we prefer to hold a neutral view”.