21 Jul 2015
EUR/USD forecast: focus on 1.08 support – Commerzbank and UOB Group
FXStreet (Edinburgh) - EUR/USD continues its march south albeit at a slower pace during the first half of the week, on its way to test the critical support at 1.0800.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has sold off to and is currently holding at the May low at 1.0819, directly below here lies the 1.0780 uptrend. We note the 13 counts on the intraday charts and this does suggest that we are likely to see a small rebound ahead of further losses… We have had a sell signal on the DMI since the 23rd June and MACD is below zero. Below 1.0780 will target the base of the 30 year channel at 1.0560”.
Furthermore, analysts at UBO Group commented “News of Greek government making its repayments to the ECB and IMF as well as the reopening of Greek banks supported the EUR… Our expectation for EUR to extend its down-move was wrong as this pair traded sideways yesterday. The consolidation has resulted in a loss in the downward momentum and the recent downward pressure has diminished somewhat. From here, allow for a dip to 1.0800 but 1.0770 is expected to hold for a rebound to retest the overnight high near 1.0870”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has sold off to and is currently holding at the May low at 1.0819, directly below here lies the 1.0780 uptrend. We note the 13 counts on the intraday charts and this does suggest that we are likely to see a small rebound ahead of further losses… We have had a sell signal on the DMI since the 23rd June and MACD is below zero. Below 1.0780 will target the base of the 30 year channel at 1.0560”.
Furthermore, analysts at UBO Group commented “News of Greek government making its repayments to the ECB and IMF as well as the reopening of Greek banks supported the EUR… Our expectation for EUR to extend its down-move was wrong as this pair traded sideways yesterday. The consolidation has resulted in a loss in the downward momentum and the recent downward pressure has diminished somewhat. From here, allow for a dip to 1.0800 but 1.0770 is expected to hold for a rebound to retest the overnight high near 1.0870”.