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EUR/USD Would Extend Bull Cycle With Break of Overnight Highs

EURUSD
  • Progress through the overnight highs of 1.0585 would put EUR/USD at the best levels since mid-June and extend the recovery off the post-NFP lows printed at 1.0429.
  • Strength through 1.0585 ahead of the Monday close opens 1.0668, the 2.236 proj of the Sep 28 - Oct 4 - 13 price swing. 1.0615 also marks the High from Jun 27.
  • Action in spot ahead of the NY crossover puts the pair within range of the largest option expiry due for today's 10am NY cut, with €1bln rolling off at $1.0570-75.
  • US data and a speech from ECB's Wunsch take focus going forward, with Wunsch due to speak at 1600GMT/1100ET.

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