Today’s Eurozone current account balance data was one of the biggest deficits of the series and a major disappointment for the Euro. The data is expected to increase from 4.2 billion to 5.3 billion, instead, it was announced -19.9 billion, the worst one since the 2008 economic crisis. The negative surprise put more downward pressure on the EURUSD ahead of the FOMC meeting.
EURUSD is in a clear downtrend since the start of this year and trying to recover as ECB started its hiking cycle. But FED’s increased hawkishness, especially after the Jackson Hole prevent the upside breakout, at least for the moment. Breaking 1.0150 and 1.0340 is a must for a trend change to happen. Until then down pressure might continue. The precious dip, 0.9860 is the support to follow this week. A break to below might lead prices to the lower line of the trend channel.
