EUR/USD bounces-back towards 1.1750 on Sentix

The EUR/USD pair regains the bids and looks to re-test 1.1750 levels, in response to a huge beat in the Eurozone Sentix Investors Confidence data for the month of October.  

EUR/USD rejected just shy of 1.1750

The recovery in EUR/USD from a dip to 1.1720 appears to gain momentum, as the EUR bulls are offered some respite on an upbeat release of the Eurozone Sentix gauge, which showed that the investors’ confidence improved to 29.7 in Oct versus 28.5 expectations.

Moreover, a fresh bout of selling seen in the US dollar against its main competitors, also collaborated to the renewed upside in the spot.  The USD index moved-off 93.67 highs to now head back towards mid-93s.

Also, the major derived some support from the upbeat speech delivered by the ECB policymaker Mersch at the Conference "Banking and Financial Regulation", Bocconi University. Mersch noted that the QE program has led to a material improvement in credit conditions.

Later today, we have nothing of relevance in terms of economic releases, as the US and Canadian markets are closed on a National holiday. Hence, focus now shifts towards a fresh batch of US macro news due on the cards later this week, alongside the release of the FOMC meeting minutes and ECB Draghi’s speech.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank writes: “EUR/USD last week sold off to and held the initial test of the 1.1662 August low. Intraday rallies have so far been relatively tepid and will find initial resistance at 1.1833 end of September high. We would treat a break below 1.1660 as the trigger for a sell off to the mid-June high at 1.1296 and the more important 1.1110 end of May low.”