Double-top bearish reversal – OCBC

Euro (EUR) slipped amid broad US Dollar (USD) rebound. EUR was last at 1.1109 levels, OCBC FX strategists Frances Cheung and Christopher Wong note.

Resistance is at 1.12 double-top

“ECB speaks are also of interest. Lagarde told a parliamentary hearing yesterday that the suppressed level of some survey indicators suggests that the recovery is facing headwinds. She added the latest developments strengthen our confidence that inflation will return to target in a timely manner. We will take that into account in our next monetary policy meeting in October.”

“Daily momentum is not showing a clear bias while RSI turned lower. Risks remain skewed towards the downside. Double-top pattern observed – typically associated with bearish reversal. Support at 1.11 (21 DMA), 1.1030,60 levels (50 DMA, 23.6% fibo retracement of 2024 low to high). Resistance at 1.12 (double-top).”