30 Jul 2015
EUR/USD forecast: focus on US GDP – Commerzbank and Societe Generale
FXStreet (Edinburgh) - The offered tone remains unchanged around the euro post-FOMC meeting, with all the attention now on the GDP figures for the second quarter in the US economy.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “came under pressure last night and the market appears to have topped for now at the 1.1124/29 Fibo resistance. The demise of 1.10 puts it on the defensive in the range. Intraday rallies are likely to struggle 1.1005 for a slide back to the 1.0819/04 May low and uptrend”.
Furthermore, Strategist Kit Juckes at Societe Generale added “The key support for EUR/USD remains the 1.08 area and it'll take more than 'OK' US GDP to break that. There is a risk of Greek politics intervening, and if a split in Syriza triggers an emergency congress and threat of early elections, that's the kind of news to trigger cries of 'Oh no, not Greece again' in an investment community that believes the crisis is in remission”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “came under pressure last night and the market appears to have topped for now at the 1.1124/29 Fibo resistance. The demise of 1.10 puts it on the defensive in the range. Intraday rallies are likely to struggle 1.1005 for a slide back to the 1.0819/04 May low and uptrend”.
Furthermore, Strategist Kit Juckes at Societe Generale added “The key support for EUR/USD remains the 1.08 area and it'll take more than 'OK' US GDP to break that. There is a risk of Greek politics intervening, and if a split in Syriza triggers an emergency congress and threat of early elections, that's the kind of news to trigger cries of 'Oh no, not Greece again' in an investment community that believes the crisis is in remission”.