Pace of decline moderates – OCBC

Euro (EUR) was a touch softer, amid broad USD rebound. EUR last seen at 1.1515 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Some consolidation not ruled out

“Developments in France — including a fragile government that only narrowly survived two no-confidence votes, ongoing budget tensions, and new proposals for a wealth tax — added to investor unease.”

“A hung parliament in the Netherlands, underwhelming French inflation data, and Italy’s calls for the ECB to restart quantitative easing also dampened sentiment. While near-term political noise may keep the euro capped, the broader outlook remains constructive.”

“Daily momentum is mild bearish but decline in RSI shows tentative signs of moderating near oversold conditions. Some consolidation not ruled out. Support at 1.1460 (38.2% fibo retracement of Apr low to Sep high), 1.1320 (200 DMA, 50% fibo). Resistance at 1.1630/40 (21 DMA, 23.6% fibo), 1.1670/80 (50, 100 DMAs).”