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17 Mar 2016
EUR/USD forecast: revitalized by the Fed – Commerzbank and Danske Bank
EUR/USD has regained the 1.1200 handle and beyond in response to a violent sell off in the greenback in the wake of the FOMC statement on Wednesday.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “saw a strong rally off 1.1060 the December high. Overhead lies the seven month resistance line at 1.1308 and also the February high at 1.1377, while these could be reached, the market is expected to then struggle”.
In addition, Senior Analyst at Danske Bank Morten Helt suggested “In the absence of USD support from relative interest rates, we are likely in for range-trading in the 1.10-1.14 interval for the pair near term before a more sustained move higher further out (still looking for 1.16 in 12M)”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “saw a strong rally off 1.1060 the December high. Overhead lies the seven month resistance line at 1.1308 and also the February high at 1.1377, while these could be reached, the market is expected to then struggle”.
In addition, Senior Analyst at Danske Bank Morten Helt suggested “In the absence of USD support from relative interest rates, we are likely in for range-trading in the 1.10-1.14 interval for the pair near term before a more sustained move higher further out (still looking for 1.16 in 12M)”.