EUR/USD: French PM survives another day – OCBC
|Euro (EUR) was a touch firmer overnight as political uncertainties in France found a breather. EUR last seen at 1.1637 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Fragile situation still warrants caution for EUR bulls
"French PM Lecornu pledged to suspend President’s Macron pension reforms, and importantly, he reversed the proposed increase in retirement age from 62 to 64. Socialist party (PS) agreed to not join efforts to topple the government. PM Lecornu faces 2 no-confidence motions and he faces a real risk of being ousted if Socialists join forces."
"Macron had indicated that any vote to topple Lecornu’s cabinet would force him to dissolve parliament and call elections. The fragile situation still warrants caution for EUR bulls in the interim though the broader fundamental outlook remains supportive of the euro, suggesting a bias for buy-on-dips approach (but requires patience)."
"Bearish momentum on daily chart shows signs of easing while RSI rose. Resistance at 1.1640 (100 DMA, 23.6% fibo), 1.1690/1.1700 (21, 50 DMAs). Support at 1.1550, 1.1460 (38.2% fibo retracement of Apr low to Sep high)."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.