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16 Dec 2015
EUR/USD forecast: it’s all about the Fed – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The shared currency is extending its consolidative pattern around the mid-1.0900s vs. the dollar today, ahead of PMIs in Euroland and the key FOMC meeting in the US economy.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has tried to crack the 200 day ma at 1.1035 for the past 5 trading days. The market executed a key day reversal yesterday and will need to close below 1.0920 as an absolute minimum to alleviate immediate upside pressure (but this is now favoured). Directly above here lies tougher resistance at the 1.1087/97 September low and 28th October high”.
In addition, Chief Analyst at Danske Bank Allan von Mehren suggested “The Fed rate hike and dovish non-US central banks should drive modest USD strength near term. We expect EUR/USD to trade lower ahead of year-end but we stress that the cross will stay in the 1.05-1.10 range in coming months”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has tried to crack the 200 day ma at 1.1035 for the past 5 trading days. The market executed a key day reversal yesterday and will need to close below 1.0920 as an absolute minimum to alleviate immediate upside pressure (but this is now favoured). Directly above here lies tougher resistance at the 1.1087/97 September low and 28th October high”.
In addition, Chief Analyst at Danske Bank Allan von Mehren suggested “The Fed rate hike and dovish non-US central banks should drive modest USD strength near term. We expect EUR/USD to trade lower ahead of year-end but we stress that the cross will stay in the 1.05-1.10 range in coming months”.