EUR/USD recovery hits resistance right below the 1.0885/95  area


  • EUR/USD’s rebound from 1.0766 finds resistance at 1.0875.
  • The euro regains lost ground although it remains weighed by concerns about ECB’s QE.
  • Below 1.0760, the EUR/USD might extend towards 1.0635 – Credit Suisse.


EUR/USD's rebound from 1.0766 lows on Thursday extended on Friday to intra-day highs at 1.0875, where the pair seems to have hit resistance before pulling back to 1.0850. The euro has turned back right ahead of a key resistance area, at 1.0885/95 where the pair was capped several times in April.

The euro remains weak on concerns about the ECB QE

The EUR/USD has been trimming losses today, buoyed by a somewhat brighter market sentiment with easing restrictions in the world’s major economies boosting hopes about a faster than expected economic recovery.  

The pair lost about 1.6% earlier this week after the German high court called the ECB to justify bonds purchases of its Quantitative Easing program. The German court ruling cast shadow about the future of the European Central Bank’s plan to support economic recovery from the COVID-19 shutdown, which has undermined investors’ confidence on the euro.

EUR/USD’s year-end target is 1.1000 – Deutsche Bank

FX analysts at Deutsche Bank have lowered the EUR/USD year-end target to 1.1000 amid the growing uncertainty in EU stability, “Questions around Europe’s systemic stability linger and newsflow on this front in recent weeks has been disappointing, including ECB reluctance to deploy OMT; the German Constitutional Court decision and delays in putting together a Recovery Fund (…) We flatten our EUR/USD forecast for this year, with a 1.10 year-end target.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides from 1.18 amid risk-off mood, US data eyed

EUR/USD is trading under 1.18, falling as the US dollar benefits from the risk-off mood. Worries about covid, China's techlash and tensions ahead of the Fed are weighing on sentiment. US Durable Goods Orders are eyed.


GBP/USD retreats from 1.38 as the dollar gains ground

GBP/USD is trading below 1.38, as the safe-haven dollar gains ground across the board. Earlier, sterling benefited from the drop in British covid cases. 


Gold slips below $1,800 as USD lingers near highs

Gold prices loiter near the $1,800 mark for the past five trading sessions. The US dollar remains steady near the four-month high ahead of the Fed’s interest rate decision. The prices moved cautiously despite the general negative sentiments surrounding the greenback.

Gold News

Dogecoin to retest critical support before overcoming doubt

Dogecoin price thrilled investors after posting a 17% surge on July 26. Following the swing high, DOGE has wiped out most of those gains as it retraces.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more