EUR/USD to dive towards 2020 low of 1.0640 as 1.11 caps the rebound – Westpac

EUR/USD stays relatively quiet around 1.1050 after gaining nearly 200 pips on Wednesday. Economists at Westpac expect the EUR/USD pair to remain under pressure while below the 1.11 level.

Current rebound is seen as a correction

“Agreement to issue regional EUR bonds may lift EUR and confidence, but failure would undermine them.”

“EUR/USD tested 1.08 more rapidly than expected and the current rebound is seen as a correction.”

“Unless EUR sustains a close above 1.11, the pair is likely to retest the 1.0775-00 area or even 2020’s 1.0635-40 low.”