EUR/USD: a hope for correction
EUR/USD found some support in the 1.1460 area. Analysts at SEB bank said that it looks like the pair’s forming a bottom in the form of an inverse “Head and Shoulders” formation. However, intraday bullish formations haven’t worked well for euro so far as the bearish pressure on the single currency is very strong.
According to SEB, if this is just another range in the ongoing downtrend, it could last until ECB. However, if EUR/USD manages to rise above the neckline at 1.1661, the inverse “Head and Shoulders” can bring it to 1.1820.
In line with such position some analysts think that many negative factors are already priced in EUR/USD, so the pair’s downside in the near term is limited. Commerzbank allows a consolidation in the very near term pointing at initial resistance at 1.1709.
Watch German ZEW Economic Sentiment data release at 10:00 GMT today.