Euro Correction Seen Near Key Averages Against US Dollar
Societe Generale's Morning Briefing suggests that the EUR/USD currency pair is on course for its second weekly drop. The bank notes that the pair has traded between 1.1359 and 1.1387 overnight, with a defense of the 100-week moving average at 1.1356 indicating that the correction may have run its course.
The technicals are stretched, but a deeper drop cannot be ruled out in the fourth quarter, according to Societe Generale. The bank cites support at 1.1270 and resistance at 1.1450, with a large option expiry at 1.1400. Oversold Euro tests 100wma" is how the bank describes the current state of the currency pair.
The EUR/USD sank below 1.14, but stronger services PMI data in September for Germany and France failed to attract dip buying. The latest rise in the German IFO business survey also had little impact on the currency market.