FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that the EUR is soft and favouring downside.
“Today’s weak German IFO, coming in below expectations and the June data, warns of fading confidence; however it is next week’s flash CPI, expected to be stable at 0.5% on headline and 0.8% on core, which is critical to evaluating the path of ECB policy and EUR. We hold a Q314 target of 1.34 and a year-end target of 1.30; expecting EUR to leak slowly lower from here."
"EUR/USD short‐term technicals: bearish—technical studies are all bearish EUR, warning of a test lower still. 1.3400 is an important technical level and we would expect support to hold only temporarily there."