EUR/USD: 0.9980/1.0000 area to hold the correction – ING

EUR/USD continues its advance on Tuesday. Economists at ING expect the 0.9980/1.0000 region to cap the correction.

Corrective window for EUR/USD

“Energy shock is temporarily going into reverse as European gas prices drop sharply on the warmer weather and European governments having largely achieved their gas storage targets. It would thus be churlish of us to suggest that EUR/USD does not need to rally.”

“A quiet week for US data (just soft US housing) creates a corrective window for EUR/USD, where an obvious target is the top of this year's bear channel at around the 0.9980/1.0000 area. We would assume that this continues to hold the correction.”