Weighed by dovish ECB – ING

The Euro (EUR) continued to trade with a strong bias, weighed down by dovish remarks from ECB officials. The EUR was last at 1.0928 levels, note OCBC FX analysts Frances Cheung and Christopher Wong.

The double-top reversal is underway

“Kazaks said rate cuts are necessary because the economy is weak … rates may go to neutral if inflation hits 2% in 2025, while Kazimir said he could not rule out a rate cut at the next meeting, although he is not at as convincing as the October media reports. cut.”

“Daily momentum is bearish, while the RSI has dropped close to oversold conditions. Risks remain tilted to the downside. The double-top reversal is underway. Support at 1.0900/30 (100 DMA, 50% fibo) and 1.0830 (61.8% fibo) levels.”

“Resistance at 1.1050/60 (50 DMA, 23.6% 2024 fibo retracement from low to high) and 1.1090 (21 DMA) levels.”