The Euro (EUR) rebounded amid broad USD pullback, Rates Strategist Frances Cheung and FX Strategist Christopher Wong from OCBC note.

EUR/USD to remain rangebound ahead of elections

“The main focus is on French elections in the short term. Depending on the skew of the results, knee-jerk impact on EUR can vary but is likely to be skewed to the downside, unless outcome surprises with Macron’s Ensemble coalition winning a larger share.”

“Pair was last at 1.0706 levels. Bearish momentum on daily chart shows signs of fading while RSI rose slightly. Some risks to the upside but 2-way trades still likely ahead of French election risks.”

“Support at 1.0660/70 levels (recent low) before 1.06 levels. Resistance at 1.0770 (50 DMA), 1.0810 (38.2% fibo retracement of 2024 high to low, 100 DMA).”