EUR/USD: Powerful underlying downtrend to persist – ING

EUR/USD has found solid support around the 0.95 area so far. Nevertheless, the pair is unlikely to stage a significant rally, according to economists at ING.

Any rallies above 0.97 to prove brief

“The European Central Bank (ECB) is talking tough and will probably deliver on the 75 bps of hikes expected for the 27 October meeting. We doubt this provides much support for the euro, however.”

“0.9500 has proved a good support area for EUR/USD after all and the BoE action did provide a brief reprieve to non-dollar currencies across the board. But we see nothing yet to reverse this powerful underlying downtrend in EUR/USD and expect any rallies above 0.97 to prove brief.”