EUR/USD needs to surpass the 1.17 to enjoy further gains – OCBC

EUR/USD closed firmer but was limited 1.1660. The pair seems to have gone into a consolidation phase around mid-1.1600s and would need to break above 1.1700 to see further gains, economists at OCBC Bank report.

Break below 1.1580 needed to negate upward momentum

“The inability to retest 1.1660/80 highs may put the bulls off somewhat, but a deeper retracement below 1.1580 may be needed to completely negate upward momentum.”

“Accelerated upward extension seen if 1.1700 breaks.”

“ECB’s Weidmann, possibly the most hawkish member, to resign – leaving any remnant hawkish camp within the ECB weakened further.”