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2 Nov 2015
EUR/USD forecast: PMIs eyed – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The single currency remains in the low-1.10s so far vs. the dollar, ahead of the final prints of the manufacturing PMIs in the euro bloc.
Axel Rudolph, Senior Technical Analysis at Commerzbank, noted the pair “remains under pressure following its break of its 7 month 2015 support line. This is bearish and is considered to be the completion of a consolidation pattern which has developed for most of this year. We would like to also see a weekly close below 1.0965/40 to confirm last week’s break”.
In the meantime, analysts at Danske Bank added “Over the coming months, we see some further downside to the EUR/USD from relative rates but in the medium term we stick to our call that strong euro area fundamentals will take over from relative rates and push EUR/USD higher on a six- to 12-month horizon”.
Axel Rudolph, Senior Technical Analysis at Commerzbank, noted the pair “remains under pressure following its break of its 7 month 2015 support line. This is bearish and is considered to be the completion of a consolidation pattern which has developed for most of this year. We would like to also see a weekly close below 1.0965/40 to confirm last week’s break”.
In the meantime, analysts at Danske Bank added “Over the coming months, we see some further downside to the EUR/USD from relative rates but in the medium term we stick to our call that strong euro area fundamentals will take over from relative rates and push EUR/USD higher on a six- to 12-month horizon”.