1 Dec 2015
EUR/USD forecast: focus on PMIs – Commerzbank and OCBC
FXStreet (Edinburgh) - The single currency is trading on a firmer footing vs. the US dollar on Tuesday, testing the boundaries of 1.06 the figure ahead of November’s PMIs.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted “The market continues to weigh on the downside - the daily RSI has not confirmed recent low and this reflects a loss of downside momentum. This non-confirmation of the down move continues to worry us as we approach major supports, namely 1.0560/20, the 2000-15 support line and April low and also the 1.0457 March low, where we would expect to see some profit taking”.
Furthermore, FX Strategist at OCBC Bank Emmanuel Ng added “Expect the EUR to continue to feel the heat as we head into the ECB meeting on Thursday with imminent risks towards 1.0400 still a potential prospect while 1.0700 may continue to cap initial upticks”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted “The market continues to weigh on the downside - the daily RSI has not confirmed recent low and this reflects a loss of downside momentum. This non-confirmation of the down move continues to worry us as we approach major supports, namely 1.0560/20, the 2000-15 support line and April low and also the 1.0457 March low, where we would expect to see some profit taking”.
Furthermore, FX Strategist at OCBC Bank Emmanuel Ng added “Expect the EUR to continue to feel the heat as we head into the ECB meeting on Thursday with imminent risks towards 1.0400 still a potential prospect while 1.0700 may continue to cap initial upticks”.