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EUR: Gradual Bearish Momentum Remains in Place

EUR
USGlobalCEEMEABulletMarketsForeign Exchange BulletsRegionNorth America
  • EURUSD crept below the 1.0900 handle overnight to trade a fresh two-month low of 1.0885, keeping the pairs overall bearish momentum intact, albeit at a gradual pace.
  • Initial support just above 1.0880 (both Fibonacci retracement level and the Aug 08 low) has held for now, and the broader pressure on the greenback in recent trade has seen EURUSD rise back to a session high of 1.0916.
  • Moving average studies are in a bear-mode position and a breach of 1.0880 would strengthen the likelihood of a deeper retracement towards 1.0778, the Aug 1 low and a key support.
  • Additionally, the moderately firmer UK labour market data has weighed on EURGBP (-0.15%). While the cross continues to trade within the Oct 3 range, a short-term technical downtrend dominates and key support remains at 0.8311, the Oct 1 low.
  • The ECB rate decision and press conference are the key events for the single currency this week. Following the weaker-than-expected PMI and inflation data, the market and many on the Governing Council have rallied behind an October cut, which appears to be the most likely outcome.
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  • EURUSD crept below the 1.0900 handle overnight to trade a fresh two-month low of 1.0885, keeping the pairs overall bearish momentum intact, albeit at a gradual pace.
  • Initial support just above 1.0880 (both Fibonacci retracement level and the Aug 08 low) has held for now, and the broader pressure on the greenback in recent trade has seen EURUSD rise back to a session high of 1.0916.
  • Moving average studies are in a bear-mode position and a breach of 1.0880 would strengthen the likelihood of a deeper retracement towards 1.0778, the Aug 1 low and a key support.
  • Additionally, the moderately firmer UK labour market data has weighed on EURGBP (-0.15%). While the cross continues to trade within the Oct 3 range, a short-term technical downtrend dominates and key support remains at 0.8311, the Oct 1 low.
  • The ECB rate decision and press conference are the key events for the single currency this week. Following the weaker-than-expected PMI and inflation data, the market and many on the Governing Council have rallied behind an October cut, which appears to be the most likely outcome.