EUR/USD edged below 1.09 briefly overnight behind broader USD strength. EUR short-covering plus a stronger than expected ZEW Expectations reading for October lifted spot slightly, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
EUR recovers from sub-1,09 levels
“The investor sentiment index nudged up to 13.1, form 3.6 in September, above consensus expectations for a rise to 10. The news is only somewhat positive for the EUR as firmer sentiment is being supported by investor hopes for quicker ECB rate cuts.
“The broader bear trend in EUR/USD remains well-entrenched on the short-term chart but intraday price action is reflecting some demand for the EUR on dips below 1.09, with two bull “hammer” signals developing around the lows over the past 24 hours.”
“EUR faces minor resistance at 1.0925 on the hourly chart and will need to push above that point this morning to extend the rebound to the mid/upper-1.09s. Broader technical patterns continue to point to a decline to the 1.08 area, however, so markets will likely took to fade modest EUR gains below 1.10.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
