EUR/USD: the ECB will have a hard time getting the euro to drop, technical charts remain positive (Danske Bank)

In an analysis it just published, Danske Bank reminds us that the EUR/USD pair hit the psychological threshold of 1.13 on Wednesday following the ADP report, but mentions that attention is turning to the ECB now:

The ECB will have a hard time getting the euro to fall:

"The market will probably need a significant dovish change from the ECB to be inclined to sell the EUR/USD, i.e. it will open the way to rate cuts and/or quantitative easing.

We believe that the ECB will find it hard to be dovish enough to weigh on the euro, as it becomes clear that the Fed is one step ahead of the ECB in this dovish shift. Therefore, we don't expect the ECB to derail the EUR/USD."

A positive chart profile for the EUR/USD, as long as the pair maintains 1.1106

As for Commerzbank, it points out that the outlook for the EUR/USD pair is increasingly positive:

"The initial target will be the 200-day moving average at 1.1369, followed by 1.1570, the 2019 peak. The support levels are located at 1.1215 then 1.1150, before the annual lows at 1.1110/06.

Support at 1.1110/06 is considered as the breaking point of the upward trend."