EUR/USD could sink into the 1.0480/1.0510 support area – ING

EUR/USD broke below 1.06 for the first time since mid-March. Economists at ING analyze the pair’s outlook.

Falling world trade does not help

Not helping the Euro has been data released showing that world merchandise trade volumes fell another 0.6% month-on-month in July. As a relatively open economy, the Eurozone suffers from a declining trade environment, as does the Euro. 

Without support from extreme under-valuation or existing heavy short positioning, the EUR/USD pair looks as though it could sink into the 1.0480/1.0510 support area.