EUR/USD forecast: life after ECB – Commerzbank and Danske Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The single currency is trading in 2-month lows vs. the dollar on Friday in response to the dovish remarks from Draghi on Thursday, with EUR/USD hovering over the low-1.1100s so far.

    Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “came under severe downside pressure yesterday falling below the 55 day ma at 1.1247 and the 200 day ma at 1.1124 to reach the 6 month uptrend circa 1.1070. We suspect that this will hold the initial test, we have a TD perfected set up in the 240 minute chart and would allow for a 1.1165/1.1210 rally. Please note that longer term we view this as a large continuation pattern and this will complete on a weekly close below 1.1070”.

    Furthermore, Senior Analyst at Danske Bank Pernille Henneberg, added “we have lowered our 1M and 3M EUR/USD forecasts to 1.10 and 1.08 respectively, as a further deposit rate cut is more EUR-negative compared to our previous call of an extension of the QE programme. However, we have maintained our 6M and 12M EUR/USD forecasts at 1.12 and 1.20 as medium-term fundamentals support a higher EUR/USD”.
    For more information, read our latest forex news.

Share This Page

free forex signals