EUR/USD: The 1.1600 support to come under scrutiny in the next sessions

EUR/USD’s near-term outlook remains fragile in the low-1.1600s at the beginning of the week as the sentiment is still biased towards further downside and a drop below 1.1600 is on the cards, FXStreet’s Pablo Piovano reports. 

Key quotes

“Tuesday’s presidential debate between Donald Trump and Joe Biden comes in with less than 40 days to the November elections, while the US labour market report will gather the bulk of attention in the end of the week along with another revision of the Q2 GDP and the ISM Manufacturing. Closer to home, ECB’s President Christine Lagarde speaks later on Monday and Wednesday along with other ECB-speakers, while preliminary inflation figures in Euroland for the month of September will also be under the microscope.”

“The offered bias appears unchanged and it will not be surprising to see sellers attempting to breach the key support at 1.1600 the figure in the next sessions, particularly following positive results from the US docket. Despite this view, a deeper retracement to the relevant contention region around 1.15 (March tops) is still unfavoured.” 

“On the other hand, the recently broken key area in the 1.1700 neighbourhood has now become the next target of significance of occasional bullish attempts.”