The breach of the 1.1800 support by the EUR/USD sparked greater USD buying. Economists at OCBC Bank continue to favour the USD, with the EUR/USD pair likely attracted to the 1.1700 support.
See – EUR/USD: Noticeably under pressure, March lows at 1.1704 in the crosshairs – Commerzbank
Momentum favours of the USD at this juncture
“Downside momentum seemed to be accelerating. The close below 1.1800 would mean that the EUR/USD will be attracted to the 1.1704 year-to-date low. Retain a bearish bias.”
“Eyes on the upcoming ECB policy review, with early indications suggesting that the ECB is ready to raise its inflation target to a symmetric 2% – if this is accompanied by more asset purchases, this would be a key negative for the EUR on the structural horizon.”
