EUR/USD: Base at the 1.12 level suggests another leg higher – OCBC

EUR/USD takes the bids around 1.1236, flat on a day, as the pair looks to be building a base at the 1.12 psychological, which implies a move higher is coming, per OCBC Bank.

Key quotes

“Risk-related gains were pared as headlines that the EU remains far from agreement in the virus recovery package flowed through. This limited the EUR-USD’s gains, and left it firmly within range again.” 

“The inability to breach 1.1200 should be a warning sign for bears, and with the short-term implied valuations also turning higher, the bias appears to be for the pair to build base around 1.1200 for another move higher.”