EUR/USD Drops Below 1.140 as ING Forecasts Return Toward 1.130

EUR/USD Pulls Back Below 1.140 as ING Predicts Move Toward 1.130

ING Says EUR/USD Rally Was Overdone, Cites Risk of Deeper Correction

The EUR/USD currency pair has slipped below the 1.140 mark, with analysts at ING stating that the pair had become overpriced near 1.145, and the latest move lower is likely driven by short-covering and profit-taking.

Weak Eurozone Inflation Raises Dovish ECB Expectations

Recent eurozone inflation data came in below expectations:

• Headline CPI dropped below the ECB’s 2.0% target
• Core inflation decelerated sharply from 2.7% to 2.3%

This slowdown raises the likelihood of a more dovish European Central Bank tone in upcoming policy communications, further pressuring the euro.

Trade and US Data Key to Short-Term Direction

ING notes that positive developments in US-China trade tensions could keep EUR/USD subdued. However, the pair could rebound if upcoming US economic data—particularly labor and services numbers—miss expectations.

Related: Will US Data Rescue the Euro? EUR/USD Outlook

Technical Outlook: EUR/USD

• Resistance: 1.1420 / 1.1450
• Support: 1.1350 / 1.1300
• Short-term bias: Bearish unless weak US data lifts demand

Internal Link Suggestions:

• Live EUR/USD Chart
• ECB Rate Decision Tracker
• US-China Trade War Impact on FX