EUR/USD: Good opportunity to buy on dips toward 1.1550 – OCBC

EUR/USD continues to see strong upside momentum, with the 1.1600 resistance breached, and the pair holding above that level. Terence Wu, an FX strategist at OCBC Bank, recommends buying on dips towards 1.1550 as the upside bias will just fade on a break below 1.1370/00.

Key quotes

“We are not expecting a shift in overall market sentiment, at least not yet. Momentum should still weigh on the USD lower at this juncture, especially with the EUR still looking higher.”

“Short-term implied valuations are ticking higher, but continue to underperform spot.”

“Looking for excessive topside from here may not be rewarding for now. Instead, look for opportunities to buy on dips towards 1.1550.” 

“Overall, the upside trend may only be impinged if the pair dips towards 1.1370/00.”