EUR/USD: Bias to fade rally – OCBC

EUR rose amid broad USD softness, OCBC FX strategists Frances Cheung and Christopher Wong note.

Potential rising wedge in the making

“Euro was last seen at 1.1164 levels. Bullish momentum on daily chart intact but RSI is in overbought conditions. Potential rising wedge in the making – typically associated with a bearish reversal. We do not rule out the risk of a pullback. Support seen at 1.1140, 1.1090. Resistance at 1.12, 1.1280 levels.”

“On recent ECB speaks, Holzmann said Sep cut is not a foregone conclusion while Chief Economist Lane said that a return to 2% inflation target is not secure yet.”