24 Jun 2015
EUR/USD forecast: Eurogroup on sight – Commerzbank and UOB Group
FXStreet (Edinburgh) - After Tuesday’s deep pullback, EUR/USD is now looking to regain the 1.1200 handle ahead of the key Eurogroup meeting.
“The sharp drop in EUR was unexpected; taking out successive major supports at 1.1270 and 1.1150 with a low of 1.1134. While further EUR weakness is likely in the days ahead, the current down-move is over-extended and any further weakness for today is likely limited to 1.1110/15. On the upside, only a move back above 1.1240 would indicate that a temporary low is in place”, suggested analysts at UOB Group.
Furthermore, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has given up in the face of dense overhead resistance, namely five month resistance line, May high and February peak at 1.1443/1.1534. The intraday Elliott counts have become a lot more negative and we will look for a return to the 1.1052 26th March high and the 1.1004 2 month support line. Note that yesterdays sell off reached the top of the cloud, which offers support today at 1.1146”.
“The sharp drop in EUR was unexpected; taking out successive major supports at 1.1270 and 1.1150 with a low of 1.1134. While further EUR weakness is likely in the days ahead, the current down-move is over-extended and any further weakness for today is likely limited to 1.1110/15. On the upside, only a move back above 1.1240 would indicate that a temporary low is in place”, suggested analysts at UOB Group.
Furthermore, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has given up in the face of dense overhead resistance, namely five month resistance line, May high and February peak at 1.1443/1.1534. The intraday Elliott counts have become a lot more negative and we will look for a return to the 1.1052 26th March high and the 1.1004 2 month support line. Note that yesterdays sell off reached the top of the cloud, which offers support today at 1.1146”.