EUR/USD (current price: 1.0645)
One of the most traded currency pair finished slightly higher on Friday. The Euro managed to stay above the all-important 1.05 level despite some disappointing economic releases. Italian Retail Sales were way below expectations in October, falling unexpectedly by -0.6%. The country remains a key risk for the Eurozone before next month’s crucial referendum. The common currency is still relatively weak against the USD, as it lost more than 5% since the U.S. presidential election.
Our assessment: The cross still trades in a strong short-term downtrend, above crucial support. The long-term support level at 1.0475 remains in danger, two weeks before the FED meeting in December.
