EUR/USD set to slump towards the 1.17 level – OCBC

The inability to breach the 1.1900 resistance last week saw the EUR/USD turn tail and retest the 1.1800 support. With the lady not for tapering at the European Central bank, economists at OCBC Bank prefer to stay negative on the pair, with a bias for it to ease back towards the 1.1700 levels.

European Central Bank seems unmoved 

“Lagarde’s ‘taper-but-not-taper’ rhetoric makes for dovish ECB messaging, reversing the less-dovish tilt seen in end-Aug/early-Sep.”

“The pro-EUR bets are now likely to reverse, weighing further on the EUR.” 

“Technicals have turned south as well, after the breach of the 55-day MA (1.1806). Re-focus attention at 1.1700.”