EUR/USD: ECB not as dovish - OCBC

The Euro (EUR) rebounded and was last seen at 1.1099 levels, OCBC FX analysts Frances Cheung and Christopher Wong note. 

Bearish momentum on daily chart shows signs of fading

"ECB meeting was perceived as lack of dovishness. 25bp rate cut was delivered, well within market expectations. At the press conference, Lagarde said that it was “pretty obvious” interest rates were on a declining path but that the speed and scale of rate cuts had yet to be determined. She reiterated that policy decision will remain data-dependent in view of the uncertainty and that policymakers shall decide on rates meeting by meeting."

"Elsewhere the broad pullback in USD also contributed to the EUR rebound. Bearish momentum on daily chart shows signs of fading while RSI rose. Risks are skewed to the upside for now. Resistance at 1.1140 and 1.12 levels. Support at 1.1010, 1.0970 (50-DMA, 38.2% fibo retracement of 2024 low to high)."