Analysts at Westpac are recommending to go long on EUR/USD pair at 1.1080 levels for the target price of 1.1280, while maintaining stop loss of 1.1015.

“Rationale:

• Recent EZ data have beaten estimates with an apparent shift in trend from ever weaker activity reports
• Latest German new export and capital orders suggest a floor may been in place for a key driver of EZ’s economy
• EC has accepted Italy’s Budget proposals suggesting a less aggressive stance on annual assessments
• Regional rises in yields have lifted French 10yr OATs above zero
• Improvements in US-China trade stance lifts global risk sentiment and is now USD negative
• EU officials suggest that there is no imminent risk around EU-US auto negotiations despite lack of a deal
• Germany’s Fin Min appears to have broken the national hurdle towards the potential of an EU banking union.

Risks:

• US-China talks are still some distance from being assured and Dec signing could still be derailed
• Any deterioration in EU-US trade negotiations even if the mid-November deadline appears to have been pushed forward
• EC’s lower growth forecasts feed into ECB and cause a further push in accommodative forward guidance
• Trump Tweets: either against US trade or Fed
• EUR/USD has been tightly range-bound since mid-Oct. and may fail to find a directional push.”