Back
23 Feb 2016
EUR/USD forecast: eyes on IFO – Commerzbank and UOB
EUR/USD remains on ‘recovery-mode’ on Tuesday following yesterday’s sharp pullback to the 1.10 neighbourhood, all ahead of the German IFO due later.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has collapsed through its 200 day ma and looks set to extend losses towards the base of the channel currently circa 1.0929. Longer term we would treat a close below here as the trigger for a move to 1.0560/1.0457”.
In addition, the research team at UOB Group suggested “The anticipated pull-back from the recent high of 1.1375 has been more resilient than expected. The overnight low of 1.1000 head just above the key 1.0990 support. Undertone remains weak and a daily closing below 1.0990 would suggest EUR could extend its weakness towards the next support at 1.0850. Overall, this pair is expected to remain under pressure unless it can reclaim 1.1130 in the next few days”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has collapsed through its 200 day ma and looks set to extend losses towards the base of the channel currently circa 1.0929. Longer term we would treat a close below here as the trigger for a move to 1.0560/1.0457”.
In addition, the research team at UOB Group suggested “The anticipated pull-back from the recent high of 1.1375 has been more resilient than expected. The overnight low of 1.1000 head just above the key 1.0990 support. Undertone remains weak and a daily closing below 1.0990 would suggest EUR could extend its weakness towards the next support at 1.0850. Overall, this pair is expected to remain under pressure unless it can reclaim 1.1130 in the next few days”.