ING’s Chris Turner highlights that a key technical level at 1.1110 is providing a floor for EUR/USD, marking a 50% retracement of the prior rally. While some profit-taking on short positions is likely, ING sees a weak case for a sustained bounce.

Key support at 1.1110 but capped upside

“A high technical level at 1.1110 is currently providing the floor for EUR/USD.”

“But the case for a bounce from this support region is weak.”

“And despite seasonal trends normally being bullish for EUR/USD in December, we instead think a hawkish Fed will be the dominant theme into year-end and EUR/USD will at some stage want to press the lower end of a 1.10-1.15 range.”

“Expect EUR/USD to trade well within a 1.1140-1.1200 range today.”