EUR/USD: Holding pattern on the daily charts - OCBC

Euro (EUR) eased lower, amid broad US Dollar (USD) rebound as markets grew cautious on Powell's stance this Friday. Pair was last at 1.1677 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

2-way trades likely with risk skewed to the downside

"Meanwhile, Trump's meeting with European leaders and Ukraine President appear to have traction. Trump posted on Truth Social that he began arrangements for a meeting with Putin and Zelenskiy. The location is to be determined. Zelenskiy also said he would be willing to discuss territorial issues with his Russian counterpart."

"We reiterate that geopolitical developments may not have as much impact on EUR at this point, as the bigger factor driving EUR and most other FX, is Powell's speech at Jackson Hole on Fri. Prior to that event risk, we continue to expect EUR to revert to recent range."

"Mild bullish momentum on daily chart shows tentative signs of fading while RSI fell slightly. 2-way trades likely with risk skewed to the downside. Support at 1.1630/40 levels (21, 50 DMAs) and 1.1570 levels. Resistance at 1.1730, 1.18 levels. We look for recent range in 1.1580 - 1.1700 to hold."