EUR/USD forecast: eyes on final PMIs – Commerzbank and OCBC Bank

By FXStreet FXStreet (Edinburgh) – EUR/USD is trading closer to the 1.1300 barrier ahead of the European open on Tuesday, with market participants eyeing the final figures of the manufacturing PMIs in the euro area.

“Much has been said about the EUR’s role as a funding currency (with its attendant correlation characteristics) but beyond the short term, the dissipating sovereign bid (i.e., China’s moderating foreign reserves) and lack of inflationary pressure in the EZ may still compel the pair to ease further over the medium term. In the near term however, expect range bound trade with the 55-day MA (1.1105) and the 200-day MA (1.1303)”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.

In addition, Senior Technical Analyst at Commerzbank Axel Rudolph suggested the pair “is expected to slip back to the support line at 1.1179. We still look for losses to the base of the channel at 1.0890. Near term rallies should now struggle at the 200 day moving average at 1.1297 today and at 1.1460/70 ahead of 1.1560 in the next few days”.
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Source:: FX Street