EUR/USD: Consolidation on the cards – OCBC

EUR consolidated in absence of fresh catalyst. Pair was last at 1.0480 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Focus this week is on Euro-area CPI

“Bearish momentum on daily chart intact but shows signs of fading while RSI shows signs of turning higher. Bullish divergence is also observed on daily MACD.”

“Not ruling out EUR short squeeze in the near term. Resistance at 1.0510, 1.0650 (21 DMA). Key support at 1.0450 levels before 1.03 levels. Focus this week on Euro-area CPI. Upside surprise may aid the squeeze in EUR shorts.”