EUR/USD forecast: buying time ahead of FOMC – Commerzbank and UOB

By FXStreet FXStreet (Edinburgh) – Renewed risk aversion sentiment in the global markets is giving further legs to the single currency, pushing EUR/USD to the 1.0870 region ahead of tomorrow’s FOMC meeting.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “s starting to break down from its range and its cloud (which now acts as resistance at 1.0860), it is disappointing to see no follow through on the downside yet. Overhead the market is facing tougher resistance at 1.10/1.1060. These are the recent highs and the 200 day ma, the 2014-2016 downtrend and 55 week ma and we view the market as bearish while capped here. Our target remains the 1.0523 recent low”.

Furthermore, the research team at UOB Group noted “The recovery yesterday was unexpected as EUR touched an overnight high of 1.0856. The up-move appears to have scope to test the 1.0875/80 resistance but a sustained move above this level appears unlikely. On the downside, only a move back below 1.0810 would indicate that the short-term upward pressure has eased”.
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Source:: FX Street