FXStreet (Edinburgh) – EUR/USD has managed to recover from recent troughs in the 1.10 neighbourhood, returning to the 1.1060/70 band ahead of the European open.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “is seeing a minor bounce from its 1.0965 7 month 2015 support line, we would allow for this to hold the initial test, but look for rebounds to remain tepid”.
In addition, FX Strategist at OCBC Bank Emmanuel Ng added “a wire poll also indicated a majority of respondents expected the ECB to expand/extend its asset purchase program and this may cap near term upside in the pair while leaving the downside exposed. In the interim, the 200-day MA (1.1118) may continue to cap with any breach of 1.1000 expected to open the way to 1.0930”.
(Market News Provided by FXstreet)