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EUR/USD Sub-$1.08, Through Various Support Levels


EUR/USD trades south of its 200-DMA & $1.08, with the broader USD bid in Asia.

  • Headlines surrounding China easing rules for it’s housing market allow the cross to find a little bit of a base ahead of London hours, last $1.0785, after showing below $1.0780.
  • Technically, the trend needle in EUR/USD continues to point south and this week's move lower reinforces the current bearish condition. Price continues to weaken inside a bull channel drawn from the Mar 15 low and is approaching the base at $1.0769. This level is seen as a key support. Initial firm resistance is seen at $1.0921, the 20-day EMA.
  • Comments from ECB’s Nagel, showing continued worry re: inflation, did little for the EUR, with the Bundesbank chief also noting that the Bank needed to assess incoming data to judge if further rate hikes are necessary.
  • Elsewhere, ECB’s Vujcic pointed to the need to assess incoming data, while noting that rates are “now certainly in the restrictive territory.”
  • Final Q2 German GDP was in line with preliminary estimates.
  • The German IFO survey is due later.
  • Elsewhere, ECB speak from Jackson Hole is eyed, with comments from Lagarde (2000 BST) & Kazaks (1945 BST) due. We will also be on the lookout for ad-hoc speakers.

Fig. 1: EUR/USD

Source: MNI Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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