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16 Sep 2015
EUR/USD forecast: eyes on CPI – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD is now reverting part of the significant advance seen overnight, returning to the 1.1280 area ahead of inflation figures in the euro area and the US economy.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argues the pair “remains upside corrective near term and will remain so while above the 55 day ma at 1.1106. The intraday Elliott wave count has turned more positive – the move above 1.1332, the 1st September high suggests gains to the 1.1468 May high and currently the Elliott wave count is suggesting potential to 1.1500”.
“In the near term, we look to the 200-day MA (1.1233) with an initial cap expected towards 1.1375. Rate differentials meanwhile continue to paint a mixed picture for the pair (depending on the sector of the curve) and the pair may prove consolidative to supported in the near term”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argues the pair “remains upside corrective near term and will remain so while above the 55 day ma at 1.1106. The intraday Elliott wave count has turned more positive – the move above 1.1332, the 1st September high suggests gains to the 1.1468 May high and currently the Elliott wave count is suggesting potential to 1.1500”.
“In the near term, we look to the 200-day MA (1.1233) with an initial cap expected towards 1.1375. Rate differentials meanwhile continue to paint a mixed picture for the pair (depending on the sector of the curve) and the pair may prove consolidative to supported in the near term”, noted Emmanuel Ng, FX Strategist at OCBC Bank.