Alex Borzak
As the next ECB meeting is getting closer, while speculators are waiting for the FRS to start QE3, Commerzbank expects the Euro currency to continue depreciating. The experts say the ECB will have a hard time purchasing bonds and simultaneously coming up to market expectations. This will eventually press the common currency.
At the same time, UBS experts assume that the latest FOMC meeting reassured investors in terms of further economic stimulation. However, the latest US economic reports reassure as well, thus leaving no space for QE3 in the near future.
On the other hand, any improvement in the eurozone will make investors more confident as European exporters will benefit from a weaker Euro currency.
The experts have improved their forecast for EURUSD for the next month. However, they don’t deny that EURUSD may test 1.15 within the next 3 months.
According to , the Euro currency keeps retracing against the US Dollar. EURUSD is forming wave С or 3 of level Daily. After finishing А(С)/С , the currency pair is no forming wave В(С).
A break below 1.2588 will indicate a further rally. The closest levels of resistance are located at 1.2593, 1.2667, 1.2691. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.2294 (as shown below).
Alex Borzak
