EUR/USD: Downside impetus diluted near term

FXStreet (Bali) - Emmanuel Ng, FX Strategist at OCBC Bank, notes that the EUR/USD's ability to hold above 1.3350 in the past few sessions may have diluted the downside impetus in the near term.

Key Quotes

"Apart from risks emanating from global central bank headlines this week, the EUR will also have to contend with the slew of Aug PMI readings on Thursday. In the interim, the pair ’s ability to hold above 1.3350 in the past few sessions we think may have diluted the downside impetus in the near term with 1.3350-1.3450 likely to prevail for now with leveraged EUR shorts (still at stretched levels) on the CFTC front also being reduced in the latest week."