The Euro (EUR) continued to drift higher as Trump trade unwound. Pair was last seen at 1.0897 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

EUR faces the risk of a rebound

“Momentum is mild bullish while RSI rose. Resistance here at 1.09 (50% fibo), 1.0940 (100 DMA), 1.0970. Support at 1.0830 (61.8% fibo retracement of 2024 low to high), 1.0760 (recent low).”

“The move higher remains in line with our view that quite a bit of negativity is in the price of EUR following recent dovish rhetoric out of ECB, softer growth/ economic momentum, USD strength and the fear of Trump win and the threat of that 10-20% tariff. But with much negativity in the price, we do caution for the risk of rebound.”