10 Nov 2015
EUR/USD forecast: waiting for catalysts – Commerzbank and Rabobank
FXStreet (Edinburgh) - The demand for the single currency remains subdued at the beginning of the week, confining EUR/USD to navigate in the mid-1.0700s waiting for more solid catalysts.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “held sideways following its break below the May and July lows at 1.0819/08. The loss of this support has opened the way for further losses to the 1.0520, the April low and the 1.0457 March low. The intraday Elliott wave is suggesting we may see some near term consolidation ahead of further losses”.
In addition, Strategist at Rabobank Piotr Matys noted “It is also worth pointing out that EUR/USD fell below the upside trendline from the March low at 1.0458, which is a valid target in the coming weeks/months. Below this low, the long-term ascending trendline (marked on the monthly chart as a solid line) should offer a fairly decent support as it coincides with the psychological level of 1.00 and the Fibonacci 76.4% retracement. In other words, the parity should be a strong barrier to clear”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “held sideways following its break below the May and July lows at 1.0819/08. The loss of this support has opened the way for further losses to the 1.0520, the April low and the 1.0457 March low. The intraday Elliott wave is suggesting we may see some near term consolidation ahead of further losses”.
In addition, Strategist at Rabobank Piotr Matys noted “It is also worth pointing out that EUR/USD fell below the upside trendline from the March low at 1.0458, which is a valid target in the coming weeks/months. Below this low, the long-term ascending trendline (marked on the monthly chart as a solid line) should offer a fairly decent support as it coincides with the psychological level of 1.00 and the Fibonacci 76.4% retracement. In other words, the parity should be a strong barrier to clear”.