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EUR/USD forecast: focus on US CPI – Commerzbank and Danske Bank

FXStreet (Edinburgh) - EUR/USD remains on track to test the key level at 1.1500 in the very near term following the increasing selling mood around the dollar, while US CPI is expected to add further volatility to the greenback later today.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, said the pair “has started to erode much tougher resistance offered by the 1.1440/72 band, where the May, June and September highs were made, together with the 55 week ma at 1.1472 and the 2014- 2015 downtrend. Intraday dips lower are indicated to hold 1.1400/1.1350 ahead of another swing higher – we have very little until 1.1713/48”.

In addition, Senior Analyst at Danske Bank Sverre Holbek noted “With respect to the EUR/USD we still expect the cross to range trade in the coming months before the first Fed hike will induce a slight dip in the cross at the start of next year. Importantly, however, we still do not expect the cross to move anywhere close to parity as we only pencil in a mere extension of ECB QE and as markets will continue to price in a shallow hiking cycle from the US”.

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