EUR/USD: Next stop on the downside aligns at 1.1280/70 – OCBC

EUR/USD fell sharply on Tuesday and lost more than 0.70%. Economists at OCBC expect the world’s most popular currency pair to test the 1.1280/70 support, then 1.1230/20. 

Turn negative

“EUR/USD finally started to react to yield differentials on Tue after the bounce higher in UST yields. 

“The sharp decline puts the 1.1270/80 and 1.1220/30 supports back into the picture, and the downside move may not have fully played out just yet.” 

“Expect the pair to be USD-driven for now.”