After another rejection from the 1.0900 handle, EUR/USD
has now returned to the 1.0870/65 band.
EUR/USD capped by
1.0900
The pair’s downside seems to have found some support
around 1.0830, although the broader bearish picture remains unaltered so
far.
Recent comments by Mario Draghi has confirmed the Council will
reassess its monetary stance at its December meeting, with the increasing
likeliness of the ECB incurring in additional easing measures in order to spur
inflation figures.
Another bearish development lingering over EUR comes
from the USD side, which continues to be supported by the chances of the Fed
hiking rates as soon as next month.
EUR/USD levels to
watch
As of writing the pair is up 0.08% at 1.0868 and a break
above 1.0970 (76.4% Fibo of 1.0808-1.1713) would open the door to 1.1059
(downtrend from 1.1496) and then 1.1101 (200-day sma). On the other hand, the
next support lines up at 1.0808 (low Jul.20) ahead of 1.0519 (low Apr.13) and
finally 1.0456 (2015 low Mar.16).
