24 Nov 2015
EUR/USD forecast: eyes on IFO – Commerzbank and OCBC
FXStreet (Edinburgh) - EUR/USD has recovered from recent multi-month lows in the 1.0590 area and is now testing session tops near 1.0650 as the offered tone gathers pace around USD.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “remains under pressure, but the down move is slowing and the daily RSI has yet to confirm the new low. The market will find initial resistance offered by the 1.0691 accelerated downtrend. Key resistance remains the 1.1275/95 2014 -2015 downtrend and 55 week ma and while capped here the market will remain under pressure.
In addition, FX Strategist at OCBC Bank Emmanuel Ng argued “Largely supportive EZ PMIs failed to support the EUR on Monday with the broad USD still in ascendance. Going ahead, look for further potential rifts within the ECB’s governing council with respect to further QE although the predominant weight of expectations is for the ECB to follow through with further QE at its December meeting. In the interim, expect the market to fade upticks within 1.0500-1.0800”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “remains under pressure, but the down move is slowing and the daily RSI has yet to confirm the new low. The market will find initial resistance offered by the 1.0691 accelerated downtrend. Key resistance remains the 1.1275/95 2014 -2015 downtrend and 55 week ma and while capped here the market will remain under pressure.
In addition, FX Strategist at OCBC Bank Emmanuel Ng argued “Largely supportive EZ PMIs failed to support the EUR on Monday with the broad USD still in ascendance. Going ahead, look for further potential rifts within the ECB’s governing council with respect to further QE although the predominant weight of expectations is for the ECB to follow through with further QE at its December meeting. In the interim, expect the market to fade upticks within 1.0500-1.0800”.