EUR/USD remains in a downtrend with levels as low as 0.9200 possible – Credit Suisse
The euro is trending lower against the US dollar. Economists at Credit Suisse expect the EUR/USD pair to decline towards the 0.92 area.
Selling on rallies to 1.0000
“EUR/USD remains in a downtrend with levels as low as 0.9200 possible if fiscal difficulties pick up or Russia-related energy difficulties worsen. But with near-term short-covering possible, we favour selling on rallies to 1.0000 and above within a 0.9200-1.0200 expected Q4 range, assuming that corrections can extend by at least 4% from each new low based on recent precedents.”
“The market is very conscious of the risks of a deep euro area recession and the possibility of major hits to both consumer spending and industrial production. Fiscal outlays will need to fill many gaps.”
Author
FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
