EUR/USD: Observe the price action – OCBC

The euro (EUR) slid down after having reached levels greater than 1,1570, the maximum in more than 3 years, last week. The decay in the anguish for the tariffs slowed down the fall of the USD and helped moderate the rhythm of the EUR recovery. The EUR was last seen at levels of 1,1390, the FX analysts of OCCBC, Frances Cheung and Christopher Wong point out.

Operations are planned in both addresses

“In addition, the Rhetoric of the ECB also became more moderate. Villeroy of the ECB said that the risks of inflation seem to have decreased and that the ECB can respond quickly to new data. Rehn commented that it sees risks downward in the inflation perspectives of the region and that the value of the EUR is important to evaluate the policy. He added previously that the ECB should continue to reduce the interest rate in its next meeting in June if the forecasts show that the forecasts show that the forecast Earzone inflation falls below the 2% target of the ECB.

“The ECB chief economist, Lane, said there is no reason to affirm that a 25 basic points movement is always the predetermined, although he did not commit to any trajectory of rates. He also warned that the strength of the EUR is weighing on the economic recovery of the region through disinflation. On the other hand, Kazaks said the ECB should only reduce the rates in accommodation. Growth deteriorate much more.

“The daily impulse is flat while the recent drop in the RSI showed tentative deceleration signs. Operations are foreseen in both directions while we observe signs of rupture/rejection. Resistance in 1,1490, 1,1570 (recent maximum). A decisive breakdown of the recent maximum should see another upward impulse in the EUR to levels of 1.17. However, the failure in breaking could indicate an interim bass (since a head and shoulder pattern could be developed).