EUR/USD to test August lows at 1.1664 on a break below 1.17 – OCBC

The euro was taken lower after the European Central Bank (ECB) publicly pushed back on a hawkish media report based on unverified sources. Subsequently, EUR/USD sank towards the 1.1750 handle. Economists at OCBC expect the pair to drop to the 1.17 handle.

See: EUR/USD set to edge lower towards the 1.15 level – Danske Bank

ECB denies hawkish reports

“Unverified media reports of an earlier than expected ECB rate hike was firmly put down by the central bank. Coupled with the strong US data, the EUR/USD fell through the 1.1800 support before finding its footing at 1.1750.”

“Prefer to sell on any rally towards 1.1800, targeting 1.1700 first, then potentially Aug lows at 1.1664. This would probably need the FOMC to play ball next week.”