27 Jul 2015
EUR/USD forecast: eyes on IFO – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD has regained the psychological 1.10 handle at the beginning of the week, while market participants get ready for the German IFO due later.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, note spot “charted a fairly subdued session on Friday leaving the market in its range - our negative bias remains intact. The market has reached the 20 day ma at 1.1003. We are unable to rule out slight further gains to the 1.1052 pivot (26th March high) and 1.1062 the near term resistance line, which we continue to look to cap. These should hold for a slide back to the May low at 1.0819 and the 1.0794 uptrend”.
Furthermore, FX Strategist at OCBC Bank Emmanuel Ng suggested “Directionality for the pair this week may be dependent on the interplay between Greek news flow and the EZ data calendar set against the FOMC and US GDP numbers. On the CFTC front, leveraged net EUR shorts increased in the latest week and markets and markets may fade initial attempts towards 1.1075 with first support seen towards 1.0940”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, note spot “charted a fairly subdued session on Friday leaving the market in its range - our negative bias remains intact. The market has reached the 20 day ma at 1.1003. We are unable to rule out slight further gains to the 1.1052 pivot (26th March high) and 1.1062 the near term resistance line, which we continue to look to cap. These should hold for a slide back to the May low at 1.0819 and the 1.0794 uptrend”.
Furthermore, FX Strategist at OCBC Bank Emmanuel Ng suggested “Directionality for the pair this week may be dependent on the interplay between Greek news flow and the EZ data calendar set against the FOMC and US GDP numbers. On the CFTC front, leveraged net EUR shorts increased in the latest week and markets and markets may fade initial attempts towards 1.1075 with first support seen towards 1.0940”.