The common currency slid to post a fresh two-year low on Monday. The intraday declines came amid investors piling into the safety of the US dollar. Concerns about the potential restriction on investments to China saw a demand for the greenback.
Meanwhile, on the economic front, the German retail sales report showed a 0.5% increase, matching estimates. Germany’s preliminary inflation report, however, saw a flat print for September.
EUR/USD Could Bounce Back Higher
The currency pair is extending declines lower. Following the decline to 1.0884, the common currency is attempting to rebound. This is evident from the bullish divergence forming on the Stochastics. However, to confirm the divergence, EURUSD needs to close above 1.0944. This will open the upside toward 1.1030.
