EUR/USD Forecast: Focus on US ADP – Commerzbank and UOB
EUR/USD has returned to the 1.1300 neighbourhood following Tuesday’s dovish tone from Chairwoman Yellen and ahead of today’s ADP report in the US economy.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has again recovered in its range and is well placed to tackle the 1.1329 resistance line and the February high at 1.1377. Above here lie the September and October highs at 1.1460/95. We have minor Fibonacci resistance at 1.1300/07 and the intraday Elliott count points to a 1.1270/50 decline ahead of the next leg higher”.
In addition, the research team at UOB Group suggested “As indicated yesterday, a move to 1.1280 would not be surprising (overnight high has been 1.1303). From here, this month and last month peak at 1.1342 and 1.1375 respectively are acting as very strong resistances and at this stage, it is unclear whether EUR has enough momentum to break above these two major levels convincingly. However, as long as EUR continues to hold above 1.1175/80, the upside pressure will continue to increase in the coming days”.
(Market News Provided by FXstreet)