The Euro (EUR) continues to hold steady at around 1.0500 against the US Dollar (USD) despite increasing political uncertainty in Germany, France and a Moody’s rating downgrade on French credit on Friday, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Risks modestly skewed to the upside

“German Chancellor Scholz loses confidence vote and this paves the way for snap elections on 23 Feb 2025.”

“Mild bullish momentum on daily chart is intact while RSI rose. Risks are modestly skewed to the upside. Resistance here at 1.0540 (23.6% fibo retracement of Oct high to Nov low), 1.0610 and 1.0670/80 levels (38.2% fibo, 50DMA). Support at 1.0460, 1.0410 levels.”