EUR/USD Faces Midterm Bearish Pressure Amid USD Recovery – OCBC

EUR/USD is under renewed pressure as the US Dollar (USD) continues its recovery, according to OCBC FX analysts Frances Cheung and Christopher Wong. The pair was last seen trading near 1.1250, as bearish signals grow stronger.

Technical Outlook: Bearish Wedge Formation in Play

Analysts point out that the pair is developing a rising wedge pattern on the chart — a formation typically associated with bearish reversal signals.

📉 Key support is seen at 1.1235, the 23.6% Fibonacci retracement level from the 2025 high to low, followed by the 50-day moving average near 1.1180.
📈 Resistance is noted around 1.1420/30.

Despite a drop in RSI (Relative Strength Index), daily momentum lacks a clear directional bias for now.

Fundamentals: Impact of EU-US Trade Talks

Cheung and Wong suggest that while a short-term pullback in the Euro could occur if an EU-US agreement is reached, the broader diversification away from the USD could ultimately benefit reserve currencies like the Euro (EUR) in the medium to long term.

Market Implications

• The 'Sell USD' theme remains a key driver of long-term diversification flows.
• However, short-term sentiment is still dominated by US macro strength and Fed policy clarity.

Internal Links for Tredu.com

• EUR/USD Live Chart
• How Rising Wedge Patterns Signal Reversals
• What’s Driving the USD Recovery?
• Understanding Fibonacci Levels in Forex