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8 Sep 2015
EUR/USD forecast: attention to EMU’s GDP – Commerzbank and OCBC
FXStreet (Edinburgh) - EUR/USD has shot to the vicinity of 1.1230 on poor results from China in early trade ahead of EMU’s GDP figures for the second quarter due later.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “is holding steady just ahead of the 55 day ma at 1.1094. Our attention remains on the base of the cloud circa 1.1021. This guards the base of the channel at 1.0904. Near term rallies should now struggle and ideally be contained by 1.1332”.
Furthermore, FX Strategist Emmanuel Ng at OCBC Bank noted “Rate differentials at the shorter end continue to argue for a suppressed profile for the EUR-USD on a structural basis and as stated previously, upside potential for the pair may remain somewhat dulled as a result, with resistance expected at 1.1200 before the 200-day MA (1.1265). Sub-1.1150, expect the 55-day MA (1.1093) to lend further support”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair “is holding steady just ahead of the 55 day ma at 1.1094. Our attention remains on the base of the cloud circa 1.1021. This guards the base of the channel at 1.0904. Near term rallies should now struggle and ideally be contained by 1.1332”.
Furthermore, FX Strategist Emmanuel Ng at OCBC Bank noted “Rate differentials at the shorter end continue to argue for a suppressed profile for the EUR-USD on a structural basis and as stated previously, upside potential for the pair may remain somewhat dulled as a result, with resistance expected at 1.1200 before the 200-day MA (1.1265). Sub-1.1150, expect the 55-day MA (1.1093) to lend further support”.