EUR/USD to settle into the 0.8270-0.95 range seen in 2000-2002 on a break below 0.96 – DBS Bank

On Monday, EUR/USD depreciated 0.4% to 0.97. The shared currency is fragile if it breaks below the key support level of 0.96, economists at DBS Bank report. 

Eurozone Sentix Investor Confidence worsens

“Eurozone Sentix Investor Confidence fell to -38.3 in October, its worst reading since May 2020. More importantly, the current situation index plunged to -35.5 from -26.5.”

“Bloomberg consensus sees three-quarters of negative growth for the German economy from 3Q22 into 1Q23, amidst double-digit inflation in 4Q22.” 

“EUR has an important support level of just below 0.96. Failure to hold this could send it into the 0.8270-0.95 range seen in 2000-2002.”