EUR/USD (current price: 1.1028)
The Euro dipped below 1.10 in early trading, but showed considerable strength later on as it finished higher for the day, despite the bullish U.S. releases, as the negative Chinese numbers caused worries about the global economy. The German Final CPI was in line with expectations in September, with a still low reading of 0.1%, and this morning’s more encouraging Chinese CPI and PPI readings helped the Dollar in regaining some ground, as rate hike odds increased once again.
Our assessment: EUR/USD is still under its previous short-term consolidation zone, probably trading in a new downtrend, as the 1.10 and the 1.085 levels support the pair while the 1.1125 remains the primary resistance.
