15 Jul 2015
EUR/USD forecast: focus on Greek vote – Commerzbank and BBH
FXStreet (Edinburgh) - EUR/USD remains in the 1.1000 neighbourhood so far, pending news from the Greek parliamentary vote and Yellen’s testimony later.
“While buy the rumor sell the fact, pay have played a role, the last leg down to new lows (~$1.1040) seemed to be in response to reports that the ECB did not lift the ELA ceiling. This ensures that banks remain closed, likely now through at least Wednesday… US operators are likely to be hesitant to sell the euro without a bounce. Initial resistance is seen in the $1.1080-$1.1100 area”, suggested the research team at BBH.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair’s “short term range is 1.0916 to 1.1216, we can see that it is weighing on the downside but at present seems to lack the momentum to break down. We would adopt a sell the rally mentality our bias is neutral to negative within the 1.15-1.08 broader band”.
“While buy the rumor sell the fact, pay have played a role, the last leg down to new lows (~$1.1040) seemed to be in response to reports that the ECB did not lift the ELA ceiling. This ensures that banks remain closed, likely now through at least Wednesday… US operators are likely to be hesitant to sell the euro without a bounce. Initial resistance is seen in the $1.1080-$1.1100 area”, suggested the research team at BBH.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair’s “short term range is 1.0916 to 1.1216, we can see that it is weighing on the downside but at present seems to lack the momentum to break down. We would adopt a sell the rally mentality our bias is neutral to negative within the 1.15-1.08 broader band”.