EUR/USD Forecast: Cautious Ahead of ECB – Commerzbank and UOB
EUR/USD Forecast: Cautious Ahead of ECB – Commerzbank and UOB
EUR/USD has retreated to the 1.0970 region after being rejected once again from the critical area around 1.1050, where sits the key 200-day sma, all ahead of tomorrow’s ECB meeting.
Axel Rudolph, Senior Technical Analysis at Commerzbank, noted the pair “has been rejected by the 200 day moving average at 1.1047. Between here and the 1.1087 September low is quite a pivotal area. Ideally it will again provoke failure and as long as this is the case we will continue to target the December and March 2015 lows at 1.0523/1.0457. While capped by the 1.1105 September 23 low, EUR/USD will remain directly offered”.
In addition, the research team at UOB Group suggested “There is not much to add as the recent short-term EUR strength struggles to maintain its momentum. The outlook is still viewed as neutral and as mentioned in recent updates, only a strong daily closing above 1.1005/10 would indicate that EUR is ready to move higher. In the meanwhile, this pair is expected to trade sideways with 1.0900 and 1.1100 acting as key levels.
(Market News Provided by FXstreet)
