Monday (Oct 31) subsession, / choppy downside, temporarily traded at 0.9946, down 0.20%.
It follows a 75 basis point hike as expected but adopted a more dovish tone on the outlook, thus limiting euro gains.
The euro, however, was partly supported by data showing Europe’s largest economy unexpectedly avoided recession in the third quarter, while inflation unexpectedly climbed on the back of a painful energy stand-off with Russia.
A more dovish tone from the European Central Bank and a smaller-than-expected rate rise this week have helped fuel expectations of a turn.
Friday’s fall in Europe and America was supported above 0.9925, while gains were blocked below 1.0000, suggesting that short-term gains in Europe and America are likely to remain on the downside.
If Europe and the US rally is blocked below 0.9995 today, the downside target will point to 0.9920-0.9890.
