The EUR/USD pair has moved higher, but fell short of overcoming the 1.1600 handle. In the view of economists at OCBC, underlying negative momentum is not exhausted while below the 1.1640 mark.

Bounce? Not so fast

“The EUR/USD bounced higher amid a bout of USD profit taking. The move was however capped below 1.1600, suggesting that the broader downtrend is perhaps not exhausted.”

“Expect this move to be short-lived, and continue to expect a top-heavy posture for the pair so long as it is below the Oct high at 1.1640.”