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5 Feb 2015
What lies ahead for EUR/USD? – OCBC Bank and Commerzbank
FXStreet (Edinburgh) - EUR/USD is back to the 1.1300 neighbourhood following markets disappointment over the progress in the Greek front, fading the recent spike to 1.1540.
“Look to the ECB’s Economic Bulletin and economic forecasts for further cues today with the pair likely to remain top heavy in the interim as Greek-related uncertainty continues to weigh. Another foray towards the 1.1290 given prevailing nervousness with 1.1400 likely to cap”, argued Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, added the pair “has touched the initial retracement level at 1.1520 (23.6% retracement of the move down from October 2014) and sold off again. It is possible that this is the only corrective move that we will see. The Elliott wave count on the daily is pointing to a potential 1.1703/86 correction (double Fibonacci retracement) and even 1.2085, but intraday counts are more negative”.
“Look to the ECB’s Economic Bulletin and economic forecasts for further cues today with the pair likely to remain top heavy in the interim as Greek-related uncertainty continues to weigh. Another foray towards the 1.1290 given prevailing nervousness with 1.1400 likely to cap”, argued Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, added the pair “has touched the initial retracement level at 1.1520 (23.6% retracement of the move down from October 2014) and sold off again. It is possible that this is the only corrective move that we will see. The Elliott wave count on the daily is pointing to a potential 1.1703/86 correction (double Fibonacci retracement) and even 1.2085, but intraday counts are more negative”.