EUR/USD has managed to bounce off yesterday’s lows in the 1.0810 area, although gains remain capped around the 1.0870/80 band ahead of PMIs and US releases.
The research team at UOB Group suggested “The overnight low of 1.0823 did not reach our partial profit taking level of 1.0810. While only a break above 1.0965 would indicate that the current bearish phase has ended, downward momentum is struggling and at this stage, a sustained down-move below 1.0810 appears unlikely”.
In addition, Analyst Kristoffer Lomholt at Danske Bank noted “the EUR remains under pressure as ECB officials show little interest in dampening market expectations about next week’s meeting – in trade-weighted terms the currency is now close to the weakest level in three months. We expect the EUR to continue to trade on a heavy note going into next week’s ECB meeting”.
(Market News Provided by FXstreet)