EUR/USD briefly fell below 1.09 the previous day due to overall USD strength. EUR short covering, coupled with a stronger-than-expected ZEW October Expectations Index reading, lifted the spot slightly, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
EUR recovers from levels below 1.09
“The investor sentiment index rose to 13.1, from 3.6 in September, above consensus expectations for an increase to 10. The news is only somewhat positive for the EUR, as stronger sentiment is being supported by investors’ hopes for faster rate cuts by the ECB.
“The broader bearish trend in EUR/USD remains well-entrenched on the short-term chart, but intraday price action reflects some demand for EUR on dips below 1.09, with two bullish hammer signals developing around the minimums in the last 24 hours.”
“The EUR faces minor resistance at 1.0925 on the hourly chart and will need to break above that point this morning to extend the bounce towards the mid/high 1.09 zone. Broader technical patterns continue to point to a decline towards the area 1.08, however, markets will likely look to fade the EUR’s modest gains below 1.10.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
