EUR/USD: Further extensions lower in the coming sessions – OCBC

Depressed preliminary April PMI prints, and the failure of the EU to agree on a long-term fiscal plan should keep the EUR/USD heavy, in the opinion of Terence Wu, an FX strategist at OCBC Bank.

Key quotes

“Spot is still catching up with short-term implied valuations on the downside.” 

“With the key 1.0800 support breached overnight, we may see further extensions lower in the coming sessions. Immediate downside target at 1.0750, before 1.0700.” 

“Bounces should be limited at 1.0800/20.”