EUR/USD: Ceasefire hopes – OCBC

Euro (EUR) was a touch firmer this morning amid mild USD softness and likely in response to US-Russia meeting this Friday in Alaska. Euro (EUR) was last at 1.1644 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Slight risk to the upside

"According to WSJ, Russian President Putin proposed Ukraine ceasefire in exchange for Eastern Ukraine. But earlier, Ukraine President Zelensky had said that his country would not give its land to Russia and that Ukraine must be part of any negotiation to end the war. While negotiations may not be smooth and takes time, Europe potentially participating in Ukraine’s reconstruction plans at some point, may lend a boost to EUR, to some extent."

"Daily momentum shows signs of turning mild bullish while RSI also shows signs of rising. Slight risk to the upside. Resistance at 1.1730, 1.18 levels. Support at 1.1610/30 levels (21, 50 DMAs), 1.1570 levels.