EUR/USD: Close below 1.2100 or above 1.2220 to clarify the next leg direction – OCBC

The euro remains weighed down by domestic issues ranging from Italian politics to ECB’s discussion on EUR strength. The EUR/USD pair needs to clearly detach from the 1.2150 zone on either side to provide signal for the next direction, Terence Wu, FX Strategist at OCBC Bank, briefs.

Key quotes

“The market seemed focused on EUR-negatives at this point, with discussions on a strong EUR seen in the European Central Bank (ECB) minutes. This adds to the political and pandemic negatives.”

“The EUR/USD pair remains on the edge so long as it fails to clear the 1.2130/50 zone convincingly on either side.”

“Watch for a close below 1.2100 or above 1.2220 to potentially provide signal for the next leg of directionality.”