EUR/USD: Correction might last a few days – ING

Monday's Dollar correction saw EUR/USD break through resistance at 1.0610/1.0620. Economists at ING analyze the pair’s outlook.

Can the Euro survive today's data?

An obvious target for this correction looks to be something like the 1.0765 area.

Whether we get to 1.0765 depends on US financial markets, Thursday's European Central Bank (ECB) meeting and today's Eurozone data. Here, we see the October flash PMIs for Germany, France and the Eurozone. These are all expected to signal ongoing stagnation or recession. 

On balance, we suspect this EUR/USD correction might last a few days and perhaps EUR/USD does not even get below 1.0650 now.