EUR/USD forecast: risk trends prevail – Commerzbank and UOB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The single currency is clinging to the 1.0900 handle early morning in Europe amidst an empty docket in Euroland and markets biased towards the risk-on trade.

    “As pointed out yesterday, we were not convinced the sharp drop last Friday is the start of a sustained down-move. The rapid recovery yesterday reinforces our current neutral view. Only a daily closing below 1.0775 would indicate the start of bearish phase”, suggested the research team at UOB Group.

    Axel Rudolph, Senior Technical Analyst at Commerzbank, commented “Last week’s EUR/USD failure at 1.0968 has reinforced resistance there but the market is essentially side lined. In order to trigger a move on the downside we need to erode the 1.0776/11 January lows. Intraday Elliott counts are suggest another upside attempt but this should not extend beyond 1.1000/60”.
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