EUR/USD backs up over 1.17 from Friday’s 1.1664 low. In the view of economists at Société Générale, an initial rebound is likely but the pair will need to surpass the 1.1810 level to see further gains.
See: EUR/USD to see a rebound towards the 1.18 mark – Commerzbank
ECB minutes and Villeroy speech on Thursday
“EUR/USD has embarked on a rebound after hitting 1.1660 last week. The bounce could persist towards a multi-month descending trend line at 1.1810. This hurdle must be reclaimed for an extended up-move.”
“Next potential support levels are at projections of 1.1640 and 1.1610.”
“The ECB will publish the minutes of the July meeting on Thursday, but the bar is low to alter market perceptions. Villeroy may repeat that it is too soon to discuss reducing PEPP bond purchases, which could check the potential upside of a corrective bounce in EUR/USD.”
