Taking cues from the US dollar – OCBC

The euro (EUR) was a bit firmer amid a soft USD overnight, note OCBC FX strategists Frances Cheung and Christopher Wong.

The daily moment is easy to bear

“The pair was last seen at 1.1098. Daily momentum is slightly bearish, while the RSI has been flat. Lateral trading probably with the USD the main driver. Support at 1.1026 (recent low), 1.10, 1.0930 (61.8% 2024 fibo retracement from high to low).”

“Resistance at 1.12 (recent high) and 1.1280 (2023 high). This week the focus is on retail sales (Thursday) and GDP (Friday). The disappointing data print could move the needle for markets to price in a more accommodative ECB and the euro to trade lower.”