EUR/USD: Range still intact – OCBC

Euro (EUR) rose sharply post-Powell’s speech last Friday amid USD softness. EUR was last at 1.17 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum shows signs of turning mild bullish

"Elsewhere on ECBspeaks, Nagel said that economic outlook would need to shift significantly for the ECB to lower borrowing costs again. Rehn said that Inflation is for now in a good place… Any insurance cut just for its own sake wouldn’t be necessary though the ECB must of course be mindful of the risks."

"Lagarde said that inflation has fallen sharply, and at a remarkably low cost in terms of employment but also cautioned that it is difficult to say with confidence whether recent patterns will persist. "

"Daily momentum shows tentative signs of turning mild bullish while rise in RSI moderated. 2-way trades still likely. Resistance at 1.1730, 1.18 levels. Support at 1.1610/50 levels (21, 50 DMAs) and 1.1570 levels. We look for recent range in 1.1620 – 1.1730 to hold."