EUR/USD: Support Break and Resistance Test amid EM Currency Moves
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EUR: Support turns into resistance
Developments in emerging market currencies yesterday saw dollar demand push EUR/USD through key support at 1.0930 yesterday. That level marked the 100-day moving average which had defined the downside of EUR/USD over the last couple of weeks. The question now is whether 1.0930 proves the top of the near-term trading range - it could well do.
In terms of the European calendar today, the focus will be on ZEW investor expectations for both Germany and the eurozone. These have been deteriorating for the last few months and are expected to fall a little more. Combined with a strong US retail sales figure today, EUR/USD could well trace out a 1.0875 to 1.0930 range and remain offered into tomorrow night's release of the FOMC minutes.
