3 Dec 2015
EUR/USD forecast: all eyes on the ECB – Commerzbank and Danske Bank
FXStreet (Edinburgh) - EUR/USD is trading on a sideline pattern after hitting recent highs near 1.0620, slipping to lows around 1.0580 ahead of the ECB event later in the session.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “charted a minor new low that was not sustained. The daily RSI has not confirmed recent low, we have a 13 count and a TD perfected set up. This non-confirmation of the down move continues to worry us as we test major supports, namely 1.0560/20, the 2000-15 support line and April low and also the 1.0457 March low, we favour a near term corrective rebound”.
In addition, Senior Analyst at Danske Bank Christin Tuxen added “With market expectations high going into today’s ECB meeting the risk of a disappointment in FX markets is clearly omnipresent. If we are right that this will be the ECB’s big bazooka version 2, we should see EUR/USD test the 2015 low around 1.0450”.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “charted a minor new low that was not sustained. The daily RSI has not confirmed recent low, we have a 13 count and a TD perfected set up. This non-confirmation of the down move continues to worry us as we test major supports, namely 1.0560/20, the 2000-15 support line and April low and also the 1.0457 March low, we favour a near term corrective rebound”.
In addition, Senior Analyst at Danske Bank Christin Tuxen added “With market expectations high going into today’s ECB meeting the risk of a disappointment in FX markets is clearly omnipresent. If we are right that this will be the ECB’s big bazooka version 2, we should see EUR/USD test the 2015 low around 1.0450”.