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EUR/USD forecast: it’s all about the ECB – Commerzbank and Danske Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - EUR/USD keeps hovering over the 1.0900 handle as market participants are gearing up for the ECB’s interest rate decision and the press conference by President Draghi.

    “The ECB is in focus and if we are right that Dragi will disappoint today by not being willing to signal the need for another deposit rate cut, EUR crosses should see some support post the meeting. We thus look for a test of 1.10 in EUR/USD during the press conference”, suggested Morten Helt, Senior Analyst at Danske Bank.

    Furthermore, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “is slightly offered in its range but remains essentially sidelined - the market is facing tougher resistance at 1.10/1.1060. These are the recent highs and the 200 day ma and these should act as an effective near term ceiling. Key resistance remains the 1.1028/71 2014-2016 downtrend and 55 week ma and we view the market as bearish while capped here. Our target remains the 1.0523 recent low”.
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