EUR/USD looks to extend the rebound toward 1.17

After a brief test of two-month lows in the 1.1630 region, EUR/USD appears to have embarked on a corrective upside to the 1.1670/80 band for the time being, in tandem with somewhat alleviated sentiment in the safe haven universe. The next upside target emerges at 1.1700, FXStreet’s Pablo Piovano briefs. 

Key quotes

“The extent and duration of the rebound remains to be seen, as the second wave of the coronavirus pandemic continues to hit economies around the world, sparking fears that its impact could slow the pace of the global recovery despite confidence gauges – particularly in Euroland – keep showing a firm uptrend.”

“The recently broken key contention area in the 1.1700 neighbourhood has now become the next target of significance if buyers regain the upper hand and push for a more serious bullish attempt.”

“On the downside, and in the event of the resumption of the selling bias, recent lows near 1.1630 emerges as the initial, albeit interim, support zone. A deeper retracement to the relevant contention region around 1.15 (March tops) is still unfavoured.”