The USD traded unchanged or lower against most of its G10 peers during European trading morning. The 'greenback' lost ground against the NOK, GBP, CHF, EUR and NZD, in that order, while in high only against the SEK. However the currency remained stable against the JPY, CAD and AUD.
Yesterday, EURUSD made a new fresh low at 1.3118 but went nowhere during a particularly light session due to U.S. and Canada Labour Day holiday. The downward trend is showing some signs of weakness with stochastic displaying oversold conditions so EURUSD is expected to pullback to the 1.32 level ahead of ECB Interest Rate Decision.
I think EUR/USD will reach 1.3100 and will test the support there but I don't think it will be able to break below that level. The downward trend is exhausted. That said, if it does break below that level it might head to 1.3000
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