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EUR/USD forecasts: focus on German CPI – Commerzbank and Danske Bank

FXStreet (Edinburgh) - EUR/USD remains below the 1.06 handle at the beginning of the week, while market participants have shifted their focus to the flash German CPI for the current month.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested “The daily RSI has not confirmed the EUR/USD recent low. This non-confirmation of the down move continues to worry us as we approach major supports, namely the 1.0560/20, the 2000-15 support line and April low and also the 1.0457 March low, where we would expect to see some profit taking”.

Furthermore, Chief Analyst at Danske Bank Jens Sorensen argued “a sharper dip is seen in the cross near term but we still forecast a rebound in 6-12M. In a week that will be dominated by markets looking ahead to Thursday's ECB meeting, Fed speeches scheduled in coming days could serve as a reminder of near-term policy divergence across the Atlantic - even if US payrolls should come out on the weak side on Friday”.

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