EUR/USD: Holding pattern – OCBC

Euro (EUR) was a touch softer overnight, as US Dollar (USD) saw mild rebound. Pair was last at 1.1643 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

2-way trades likely with risk skewed to the downside

"Markets are adopting a cautious stance going into Jackson Hole, to avoid bigger disappointment (especially in the event Powell does not take a dovish tilt as expected by markets."

"Mild bullish momentum on daily chart shows signs of fading while RSI fell slightly. 2-way trades likely with risk skewed to the downside. Support here 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."