EUR/USD forecast: focus on PMIs, German CPI – Commerzbank and Danske Bank

By FXStreet FXStreet (Edinburgh) – EUR/USD keeps the buying feeling alive following the Asian session today, although it remains unable to the break above the 1.0900 handle for the time being.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, has noted the pair “starts the new year trading below its 200 and 55 day moving averages. Needless to say attention remains on support at 1.10819/1.0796, this band of support is quite pivotal, it represents the May low, the July low, the 7 th December low and a break down through here is likely to trigger another leg lower to the 1.0523 recent low (favoured)”.

On another direction, Chief Analyst at Danske Bak Jakob Christensen, added “As a relatively uneventful holiday period draws to a close, focus in the FX market will return to the impulses that investors are expecting central bankers to deliver in 2016. In 2015, the consensus FX trade of the year was to be short EUR/USD, which proved correct, albeit mainly in the first three months of the year. We think EUR/USD will stay range-bound in coming months, then stage a rebound towards 1.16 in 12M”.
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Source:: FX Street