22 Jan 2016
EUR/USD forecast: attention to PMIs – Commerzbank and UOB
FXStreet (Edinburgh) - The shared currency is trading on a softer note following yesterday’s dovish tone from the ECB meeting, taking EUR/USD to the 1.0830 area ahead of PMIs in Euroland.
“The break of 1.0800 suggests that the downward pressure is increasing rapidly. However, we prefer to see a daily closing below 1.0800 before expecting a sustained down-move in EUR. In the meanwhile, unless this pair can reclaim 1.0920 in the next few sessions, the downward pressure will continue to increase”, suggested the research team at UOB Group.
Furthermore, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “is starting to break down from its range. Overhead the market is facing tougher resistance at 1.10/1.1060. These are the recent highs and the 200 day ma and these should act as an effective near term ceiling. The market will have to close back below 1.0819/1.0796 (May low, the July low, the 7 th December low) in order to trigger another leg lower”.
“The break of 1.0800 suggests that the downward pressure is increasing rapidly. However, we prefer to see a daily closing below 1.0800 before expecting a sustained down-move in EUR. In the meanwhile, unless this pair can reclaim 1.0920 in the next few sessions, the downward pressure will continue to increase”, suggested the research team at UOB Group.
Furthermore, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “is starting to break down from its range. Overhead the market is facing tougher resistance at 1.10/1.1060. These are the recent highs and the 200 day ma and these should act as an effective near term ceiling. The market will have to close back below 1.0819/1.0796 (May low, the July low, the 7 th December low) in order to trigger another leg lower”.