EURUSD finished marginally lower on Monday, and the upside bias resumed earlier today, with the pair continues to hold above the 1.10 handle. In general, the common currency continues to fluctuate in a limited range, with bulls remain cautious ahead of German ZEW survey.
The economic sentiment index is anticipated to fall further to -27.3 in October from -22.5 in the previous month. Should another economic report confirm the rising recession risks in the Eurozone’s largest economy, the selling pressure could reemerge. In this scenario, EURUSD will get back below the 1.10 figure in the short term.
In a wider picture, downside risks persist, with market participants remain cautious as the latest US-China trade negotiations lack details and make investors doubt in a significant progress towards a full-scale trade deal some time later. On the other hand, the pair could receive a boost from positive developments on Brexit front, but this boost will likely be a short-lived one. Technically, EURUSD could target the 1.0960 area once again should the pair fail to hold above the 1.10 support again.