EUR/USD to target 1.17 on a break below 1.1780 – OCBC

EUR/USD was flat on Wednesday, recovering from an intraday dip towards 1.1770, but saw no traction above 1.1850. Terence WU, FX Strategists at OCBC Bank, sees the pair in a consolidative mode between 1.1780 and 1.1850 ahead of Powell’s speech. A break below the range would leave EUR/USD targeting the 1.17 level.

Key quotes

“EUR/USD remains limited by the 1.1850 resistance yet again.”

“Consolidative action between 1.1780 and 1.1850 should still persist into Powell. Note that topside momentum has stalled significantly, and the risk-reward going into Powell may be on the downside for this pair.”

“If the pair breaks lower post-Powell, we will expect 1.1700 to be the immediate target.”