FXStreet (Edinburgh) – The single currency continues to give ground vs. the greenback, sending EUR/USD to test multi-month lows in the 1.0850/40 area.
Analysts at Danske Bank argued, “we stress that despite the outlook for a relatively aggressive ECB at the December meeting we still expect EUR/USD to stay above the March lows, albeit with the possibility of an undershoot of our 3M forecast of 1.08 as the market may price in some likelihood of further ECB cuts and as the Fed delivers the first rate hike”.
In addition, Axel Rudolph, Senior Technical Analysis at Commerzbank, noted spot “is fast approaching the May and July lows at 1.0819/08, around which it may short term stabilise today. It remains under pressure following its break of its 7 month 2015 support line. This is bearish and is considered to be the completion of a consolidation pattern which has developed for most of this year”.