EUR/USD Price Forecast: Next upside target emerges at 1.1700

After a brief test of 2-month lows in the 1.1630 region, EUR/USD appears to have embarked on a corrective upside to the 1.1670/80 band for the time being, in tandem with somewhat alleviated sentiment in the safe haven universe.

However, the extent and duration of the rebound remains to be seen, as the second wave of the coronavirus pandemic continues to hit economies around the world, sparking fears that its impact could slow the pace of the global recovery despite confidence gauges – particularly in Euroland – keep showing a firm uptrend.

Adding to the latter, Brexit concerns remain far from abated or even mitigated, while political effervescence grows by the day in the US with less than six weeks for the November elections.

Moving forward, there are no noticeable releases in the euro docket on Friday, while Durable Goods Orders for the month of August and speeches by New York Fed John Williams (permanent voter, centrist) will be in the limelight across the pond.

Near-term Technical Outlook

EUR/USD managed to gather some composure in the area of multi-week lows near 1.1630 on Thursday. The recently broken key contention area in the 1.1700 neighbourhood has now become the next target of significance if buyers regain the upper hand and push for a more serious bullish attempt. On the downside, and in the event of the resumption of the selling bias, recent lows near 1.1630 emerges as the initial, albeit interim, support zone. A deeper retracement to the relevant contention region around 1.15 (March tops) is still unfavoured.