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29 Jun 2015
EUR/USD forecast: around 1.10 on Greek collapse – Commerzbank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD has returned to the 1.10 area following the Greek events over the weekend.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has eroded its short term uptrend and is sitting on the base of its cloud at 1.0962. It has gapped lower and while below 1.1130 it will remain directly offered an d negative while below 1.1440 the recent high”.
Furthermore, FX Strategist Emmanuel Ng at OCBC Bank suggested “With the pair detaching lower post the weekend, risks of a further slide may remain on the cards pending headline risks. Note that a sustained breach below 1.1000 risks a tumble towards 1.0900 before 1.0800. Note that short-end EUR-USD vols have spiked on Monday with riskies ‘collapsing’ while on the CFTC front, net leveraged EUR shorts increased in the latest week, a harbinger of the latest episode of EUR weakness”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has eroded its short term uptrend and is sitting on the base of its cloud at 1.0962. It has gapped lower and while below 1.1130 it will remain directly offered an d negative while below 1.1440 the recent high”.
Furthermore, FX Strategist Emmanuel Ng at OCBC Bank suggested “With the pair detaching lower post the weekend, risks of a further slide may remain on the cards pending headline risks. Note that a sustained breach below 1.1000 risks a tumble towards 1.0900 before 1.0800. Note that short-end EUR-USD vols have spiked on Monday with riskies ‘collapsing’ while on the CFTC front, net leveraged EUR shorts increased in the latest week, a harbinger of the latest episode of EUR weakness”.