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EUR/USD forecast: attention to Draghi – Commerzbank and Danske Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - EUR/USD has managed well to keep the trade above the psychological 1.10 handle so far, with today’s speech by M.Draghi carrying the potential to bring in some volatility to the otherwise dull markets.

    “While some ECB easing is indeed already priced and the market is putting a 50/50 chance on a December Fed hike, this still points to there being some leeway for relative rates to drag the cross lower on a 3M horizon and an undershoot of our 1.08 forecast on this horizon is likely”, suggested Morten Helt, Senior Analyst at Danske Bank.

    In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, noted the pair “remains under pressure following its break of its 7 month 2015 support line. This is bearish and is considered to be the completion of a consolidation pattern which has developed for most of this year. We would like to also see a weekly close below 1.0965/40 to confirm last week’s break. There we would look for losses to 1.0808 and 1.0457, the March low”.
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