Outlook for the euro exchange rate: The latest bullish and bearish views to consider on the 17th of Sept

A look at the currency markets on Tuesday afternoon shows that the Euro has benefited from today's firm ZEW Survey numbers.

The Euro Dollar exchange rate is 0.16 pct higher at 1.3355.
The Euro Pound exchange rate is 0.1 pct higher at 0.8397.
The Euro Australian Dollar exchange rate is 0.18 pct lower at 1.4287.

Please Note: These are spot market quotes; your bank will affix a discretionary spread when offering a rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.

There are a plethora of views out there as to where the Euro is headed next.

Here we consider some of the more persuasive views on offer from our contributor network.

The outlook for the Euro is bullish

Peter Rosenstreich at Swissquote has consulted the technical levels and sees further gains for the Euro ahead:

"EURUSD has unable to hold the high but resulting sell-off was mild. With MACD crossing over the zeroline, trend and momentum indicators bullish and uptrend stable, our focus is on 1.3455.

"The first region of supply is located at a distant 1.3455 (14th Feb high), then 1.3520 (13th Feb pivot high). The next support can be found at 1.2995 (10th July reaction high), 1.2963 (11th July low), 1.2877 (Fibonacci 50% retracement on Jul 12’ – Feb 13’ rally), then 1.2820 (20th May low)."

The outlook for the euro is bearish

Piet Lammens at KBC Markets believes the Euro is likely to trade in negative fashion going forward:

"The news flow from Europe improved markedly of late, but risks are still ahead. We assume that the Fed will lead the ECB in reducing policy stimulation, but this was no big support for the dollar of late.

"At some point, this factor will come into play when a further improvement in US growth fuels market speculation on the need for a normalisation in US interest rates.

"For now, there is no trigger available to kick-start this process.

"At the same time we don’t see a big case for further sustained EUR/USD gains from the current level. A cautious EUR/USD short bias is preferred."

Emmanuel Ng at OCBC Bank strikes a more tempered tone:

"The EUR-USD may remain on a supported posture although excessive upside may be capped by sporadic attempts by the ECB (e.g., Draghi yesterday) to temper and talk down rate expectations.

"Immediate resistance is expected towards 1.3400 before 1.3450 while key support multi-session is expected at around 1.3240 before the 55-day MA (1.3214)."