11 Aug 2015
EUR/USD forecast: focus on ZEW – Commerzbank and Scotiabank
FXStreet (Edinburgh) - After yesterday’s spike to the 1.1040 area, EUR/USD has now returned to the 1.0970/80 area following a risk-off sentiment in the global markets.
According to Eric Theoret, Currency Strategist at Scotiabank, “Near term risk for EUR lies with the broader tone and the emerging path for Fed normalization, with added risk from ZEW and industrial production figures, as well as ECB minutes ahead of Friday’s advance Q2 GDP. Trend indicators are muted, and EUR has softened back below its 9 and 21 day MA’s (1.0940 and 1.0949, respectively. Near term support is expected at 1.0850, with resistance seen above 1.1000”.
Axel Rudolph, Senior Technical Analyst at Commerzbank, argued the pair “seems to be sidelined around the 1.1000 area but may still slip towards the May and July lows at 1.0819/08 in the course of this week as long as the three month resistance line at 1.1041 caps”.
According to Eric Theoret, Currency Strategist at Scotiabank, “Near term risk for EUR lies with the broader tone and the emerging path for Fed normalization, with added risk from ZEW and industrial production figures, as well as ECB minutes ahead of Friday’s advance Q2 GDP. Trend indicators are muted, and EUR has softened back below its 9 and 21 day MA’s (1.0940 and 1.0949, respectively. Near term support is expected at 1.0850, with resistance seen above 1.1000”.
Axel Rudolph, Senior Technical Analyst at Commerzbank, argued the pair “seems to be sidelined around the 1.1000 area but may still slip towards the May and July lows at 1.0819/08 in the course of this week as long as the three month resistance line at 1.1041 caps”.