The EUR/USD pair has turned down and has dropped below 0.9950. Rabobank economists expect the pair to drop to 0.95 this quarter.
Trend line resistance is just above parity
“We remain bullish on the dollar and maintain our target of 0.95 for EUR/USD with a one to three month view.”
“The common currency lacks the safe haven credentials of the dollarmeaning the euro is more susceptible to concerns about slowing growth.”
“Although it is clear that the eurozone faces a difficult winterin our opinion the euro still does not take into account the crisis in energy prices that the region is facing, given the risk that last for several years. This could make the production of some industrial groups unsustainable for Europe in a horizon of one to five years. Such a shock suggests a persistent weight on the euro.
“Trend line resistance is just above parity near the 50-day SMA at 1.0015“.
Source: Fx Street
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