EUR/USD: Interim downside pressure – OCBC
|Euro (EUR) continued to drift lower amid broad US Dollar (USD) rebound. Pair was last at 1.1250 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Alternative reserve currencies including the EUR may benefit
"Daily momentum is not showing a clear bias now while RSI fell. On price action, rising wedge pattern is playing out — typically associated with a bearish reversal. Support at 1.1235 (23.6% fibo retracement of 2025 low to high) and 1.1180 (50 DMA). Resistance at 1.1420/30 levels."
"A potential deal between EU-US may lead to EUR backing off from its recent highs in the near term. But more importantly, if the 'sell USD' trade remains alive amid diversification flows, alternative reserve currencies including the EUR may benefit."
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