EUR/USD turns south, next target at 1.12 – OCBC

EUR/USD has been unable to stay above the 1.13 level and Terence Wu, an FX strategist at OCBC Bank, expects the pair to fall toward the 1.12 mark as downside pressure is mounting. Meanwhile, UOB Group now expects EUR/USD to navigate within the 1.1170/1.1380 range in the next weeks.

Key quotes of OCBC

“Failure to hold on to the 200-week MA (1.1334) and 1.1300 should imply that a top has been established last week. Note that short-term implied valuations have also sunk.” 

“Expect the EUR/USD pair to see some downside pressure for now, with the next target at 1.1200.” 

“Macro environment remains inconducive for EUR strength, with the German Economics Minister warning for more data weakness.”