EUR/USD: Corrective setback in the day – OCBC

The euro (EUR) fell for the third consecutive session. The EUR was last quoted at levels of 1,0834, the FX analysts of OCBC Frances Cheung and Christopher Wong point out.

Bossed bass risks in the interim

“German/European spending plans and the hopes of a peace agreement in Ukraine are positive catalysts for the EUR, but given the strong increase in EUR, and given the risks of reciprocal rates on April 2, we continue to warn about the risk of a short -term setback. In addition, the mass sale of the TRY can also have collateral effects in the EUR, since some European banks have exposure to exposure to Turkish borrowers (around 100,000 million EUR). ”

“As for rates, it is still uncertain in terms of time if the 25% rate on European cars and other products or the 200% rate on European alcohol will soon be effective. The confirmation of the rates could see the Eur fall, but the setback may not translate into a greater fall. Instead, it could even be seen as an opportunity to buy in the fall, considering the appearance of new positive factors: Ukraine, expectations of defense spending and the possibility that the relief of the ECB can slow down. ”

“The bullish impulse in the daily graph is fading while the RSI fell. The risks are biased downward in the interim. That said, bullish crosses were observed: 21 cut the dma of 200 on the rise while 50 cut the dma of 100 on the rise. Bias to buy in the fall. Support here in 1.08, levels of 1,0700/20 Fibonacci of 50% of the maximum of October to the minimum of January).

Source: Fx Street

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