It’s not a surprise that the Brexit remains the main driver of the GBP.
EUR/USD near-term forecasts from banks
Bank’s analysts believe that any further strength in the EUR/USD exchange rate should take it into selling territory. A key resistance line, that has been touched several times since Donald Trump’s inauguration, lies at 1.0800. Any rally towards this level or above should offer an attractive opportunity to short the pair.
A release of Purchasing Manager surveys from financial information provider Markit on March 24 can offer this opportunity and push the euro towards 1.0800 area or higher. Commerzbank also highlighted this region having said that selling pressure might emerge at around 1.0829.
The bank believes that euro can weaken in the near term. European political events will likely remain a key source of downside risk for the euro with French presidential and German parliamentary elections, concerns over the outlook of Greece’s economy and extension of the ECB’s QE program.
Nomura economists expect the ECB to start communicating tapering of its QE program at September meeting. The combination of diminishing political risk premium and steps toward ECB policy normalization can lead to the EUR strengthening in the second half of the year.
Narrowing bearish Ichimoku Cloud with rising Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen, but rising Tenkan-sen; the bulls could breakout the Kijun’s resistance.
GBP/JPY broke support level 141…
Recommendation: BUY 0,9765 SL 0,971 TP1 0,985 TP2 0,9895…