EUR/USD: Signs Of Stabilization; Above 1.15 Diminish Risk Of Deeper Pullback - BTMU

BTMU FX Strategy Research discusses EUR/USD outlook for this week, noticing that after adjusting modestly lower since the ECB’s last policy meeting, there are emerging tentative signs of stabilization.

"If EUR/USD continues to hold above key technical support at the 1.1500-level, the risk of a deeper euro pullback will diminish.

 "The strengthening economic recovery in the euro-zone remains supportive for the euro and should help dampen downside risks. The release of the latest euro-zone GDP report for Q3 should confirm that robust growth has continued.

The market’s focus is more likely to be on developments in the US....The release of the latest US CPI and retail sales reports for October will be scrutinized closely as well to assess if the Fed’s plans for gradual tightening are still appropriate," BTMU argues.

BTMU is neutral on EUR/USD around current levels, seeing the pair trading in 1.14-1.18 range in the near-term.

Source: BTMU Research