With the impact of Brexit on the Eurozone seemingly minimal at the moment, there seems less and less chance the ECB will start to reflate the economy in September, at least according to Credit Agricole’s stable of analysts.
The euro is coming under pressure against the dollar both from a technical and fundamental perspective.
If the pair rises further it will encounter resistance from a major trend-line –a break above that would be required to signal a continuation up towards the top of the range, ushering in a more bullish scenario for the pair.
The EUR/USD pair has risen to near to a major multi-year trend-line where it will be tested. Can it break higher and start to move up towards the 1.17 range highs or will it capitulate and fall back down to the 1.10s again?
The pair is still technically trapped within a range, whilst fundamentals showing upside potential for both pairs forecast even more sideways action.
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