Thursday, November 19, 2015

EUR/USD forecast: bid after FOMC – Commerzbank and Rabobank

FXStreet (Edinburgh) - EUR/USD has managed to advance further following yesterday’s FOMC minutes, testing highs beyond 1.07 the figure although giving away some gains during the Asian session.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “s low of 1.0630 has not be confirmed by the daily RSI and this has diverged to imply a loss of downside momentum. We also note the 13 count on the 240 minute chart and would allow for a small rebound. Beyond this we look for losses to extend the 1.0520, the April low and the 1.0457 March low, where we would expect to see some profit taking”.

In addition, Senior FX Strategist at Rabobank Jane Foley suggested “Overall, we maintain that policy easing by other central banks will ensure the USD can continue to move moderately higher in 2016, but that the timing and pace of Fed tightening into 2016 will guide the extent of any broad-based USD gains. We see risk of a move to EUR/USD1.05 on a 3 mth view and we are forecasting a move to 1.04 in 9 to 12 months”.
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