EUR/USD: A pull-back to the 1.0800 mark is appropriate – ING

On Tuesday, EUR/USD witnessed a huge jump. Economists at ING analyze the pair’s outlook.

A break above 1.0900 would be significant

We are inclined to think a pull-back to the 1.0800 mark is appropriate given the short-term valuation (EUR/USD 1.5% overvalued). 

Conversely, a break above 1.0900 (probably on more US data weakness) would be significant and make 1.1000 the next key resistance.

See: The idea of a rate cut cycle for ECB and Fed is an argument in support of higher EUR/USD – Commerzbank