EUR/USD – Four-day winning streak stalls, all eyes on Presidential debate

The EUR/USD is on the back foot in Asia following the four-day winning streak as investors await US Presidential debate amid risk-off triggered by Deutsche Bank mess.

Trades around 23.6% Fibo

At the time of writing, the spot was trading around 1.1242 (23.6% of 1.1123-1.1279). The common currency has remained resilient despite fears the German lender would require a government bailout.

Moreover, the month end UK farm subsidy payment to EU pushed up EUR/GBP and helped EUR/USD pair score gains in the face of banking sector concerns.

The immediate focus now is on the US presidential debate. Clinton is largely seen as a status quo, while Trump is seen as ‘a change’. However, markets do not like Trump. Later in the day, Deutsche Bank saga will take center stage.

EUR/USD Technical Levels

Acceptance below 1.1242 (23.6% of 1.1123-1.1279) would open doors for 1.1223 (5-DMA) and 1.1208 (10-DMA). On the other side, 1.1254 (daily high) could offer resistance, which if breached would open doors for a re-test of 1.1279 (previous day’s high) and 1.13 (zero figure).