EUR/USD: To consolidate on the day – OCBC

Euro (EUR) bulls paused overnight, ahead of ZEW survey, industrial production data today, current account (Wednesday) and ECB meeting (Thursday). Pair was last at 1.1357 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Dovish comments may partially negate EUR’s ascend

"On ECB, our house islooking for a 25bp cut. Trade tensions pose growth concerns while the drop in energy prices and much stronger EUR are likely to have added to the disinflationary pressure. More importantly, ECB’s rhetoric is key – whether policymakers will be guiding for further cuts or mention that EUR’s recent rally as excessive, etc."

"Dovish comments may partially negate EUR’s ascend. Daily momentum is bullish while RSI rose into near overbought conditions. Consolidation likely. Resistance at 1.1460/70 levels before 1.15. Support at 1.1280, 1.1160 levels."