EUR/USD: Buy dips preferred – OCBC

Euro (EUR) continued to trade near 1.17-handle despite French political risks. Pair was last at 1.1697, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum is mild bullish

"Fiscal and debt issues can have implications on EUR. We do not rule out the risk of French rating being downgraded, and this may well have some downward pressure on EUR. Nevertheless, we reiterate that political noises may have short term bearish implication on EUR but the broader fundamentals should still support EUR, on a buy on dips."

"Daily momentum is mild bullish but RSI is flat. 2-way trades still likely in the interim; bias to buy on dips. Support at 1.1650/60 levels (21, 50 DMAs) and 1.1570 (23.6% fibo retracement of Mar low to Jul high). Resistance at 1.1830 levels (2025 high)."