What’s next for EUR/USD? The answer is apparently not so easy. Yet for the struggling Canadian dollar, the next target seems clearer.
Here are the latest forecasts from Goldman Sachs:
Here is their view, courtesy of eFXnews:
Corrective markets tend to be messy and difficult which is very much the case for EUR/USD,notes Goldman Sachs Techs.
“The rally from Mar. 16th to May 15th met a 1.618 extension target at 1.1482. The decline since May 15th is approaching a 1.00 extension target at 1.0790,” GS adds.
“From this point onwards, would expect to see another minor ABC/5-wave move develop from the 1.0790 low. A possible ABC from the Jul. 20th low extends out to 1.1216. A break above that point will increase the chances of eventually reaching 1.1414-32 (1.618 from Jul. 20th and a 0.618 extension from Mar. ’15),” GS projects.
“Would have to see a close below 1.0790 to suggest potential for a serious decline to develop,” GS adds.
Turning to USD/CAD, GS thinks that the next likely upside target is ~1.3168-1.3171 as this includes an extension from the ’11 low and 1.618 from May ’15
“A break above 1.3168-80 would open potential for 1.3414-1.3650. This next level includes 61.8% retrace of the ’02/’07 decline, a very large ABC/1.00 target from Nov. ’07 and a 1.618 extension from Jul. ’11. The fact that the market is on track to breaking its ’08/’09 highs (1.3017-1.3065) adds some confidence to this longer-term bullish setup,” GS projects.
“The first signs of a top would likely be given by a break of the Jun. 18th uptrend which is currently down at 1.2920,” GS adds.
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