EUR/USD: Corrective pullback underway – OCBC

FXStreet Insights Team FXStreet

Euro (EUR) continued to ease lower after hitting a more than 3Y high of 1.1570s. EUR was last at 1.1350 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Risks skewed to the downside

"De-escalation in tariff angst is helping stretched market moves to normalise. To add, ECB officials turned more dovish. ECB’s Rehn said that the ECB should keep lowering interest rates at its next meeting in June if forecasts show Eurozone inflation falling below the ECB’s 2% target. He also said that the ECB should not rule out larger interest rate cuts."

"ECB Chief Economist Lane said that there is no reason to say that a 25bp move is always the default, although he would not pre-commit to any rate path. Separately, the ECB is considering to change its monetary policy strategy to enable more nimble responses to price shocks as the global environment becomes increasingly volatile. This will be discussed at an informal retreat on 6-7 May in Portugal."

"Bullish momentum on daily chart is fading while RSI fell. Risks skewed to the downside. Support at 1.1290 before 1.1235 (23.6% fibo retracement of 2025 low to high) and 1.1160 (21 DMA). Resistance at 1.1410, 1.1570 (recent high)."

BRANDED CONTENT

Finding the right broker for trading EUR/USD is crucial, and we've identified the top choices for this major currency pair. Read about their unique features to make an informed decision.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD bulls seem hesitant as Hormuz ship attack supports safe-haven USD

The GBP/USD pair sticks to a positive bias for the second straight day, albeit it remains below the previous day's swing high and trades just below the 1.3200 mark during the Asian session on Friday. Furthermore, the fundamental backdrop warrants caution before positioning for any meaningful recovery from November 2025 lows, around the 1.3140 region, touched on Wednesday.

EUR/USD holds above mid-1.1300s amid Hormuz risks, bearish setup

The EUR/USD pair struggles to capitalize on the previous day's modest recovery gains and oscillates in a narrow band during the Asian session. Spot prices, however, hold above mid-1.1300s and the lowest level since May 2025, set on Thursday, warranting some caution for bearish traders.

Gold recovers early lost ground; bearish bias remains amid Fed hike bets

Gold builds on its modest intraday bounce from the $3,983-$3982 region, and climbs to the top end of its daily range heading into the European session. The US Dollar remains depressed below its highest level since May 2025 set on Thursday, amid receding Federal Reserve rate-hike bets. This is seen as a key factor lending some support to the commodity.

Ripple price clings to $1 as long liquidations deepen bearish trend

Ripple (XRP) trades near the key psychological support level of $1 after losing more than 8% so far this week. CoinGlass liquidation data shows that over 97% XRP long positions were wiped out over the past 24 hours. In addition, derivatives metrics continue to favor the bears.

Asian stock markets plummet as Apple price hike raises inflation concerns, KOSPI dives over 8%

Asian equity markets on Friday are significantly down as price hikes announced by Apple Inc. due to memory chip shortages have prompted fears of high inflation globally and concerns on earning projections of various companies that rely on these sophisticated chips for their final products.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.