Monday, October 26, 2015

EUR/USD forecast: eyes on IFO – Commerzbank and OCBC

FXStreet (Edinburgh) - EUR/USD is extending its overnight consolidative pattern around the 1.1030 area ahead of the key German IFO due later.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued that pair “charted a weekly close below the 6 month uptrend circa 1.1070. This leaves the 1.0961 7 month 2015 support line exposed, we would allow for tis to hold the initial test, best look for rebounds to rebound tepid – rallies are indicated to be likely to hold 1.1080/1.1140 As far as we are concerned the market has begun its next leg lower and will look for losses to 1.0808 and 1.0457, the March low”.

Furthermore, FX Strategist at OCBC Bank Emmanuel Ng added “Despite better than expected PMI readings out of the EZ on Friday, negative EZ yields and the backwash from Draghi’s latest comments may continue to pressure the EUR-USD in the near term. Look to the October German Ifo later today and October EZ CPI prints on Friday for potential domestic cues with the pair likely to be heavy while loitering in the vicinity of 1.0950-1.1000 pending further headline risks”.
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