How Reform Of The Electricity Market Can Support The Euro Exchange Rate?

EUR/USD continues to trade below parity on Thursday. Economists at OCBC Bank highlight the key technical levels to watch.

Price cap for gas imports and windfall levy to support the EUR

“Mild bullish momentum on daily chart shows tentative signs of fading but RSI was flat. Consolidative trades likely.”

“Support at 0.9960, 0.9910 levels. Resistance at 1.0060.”

“In European Commission President Ursula’s state of the union speech, she said that the EU will launch a ‘deep and comprehensive’ reform of the electricity market. A swift move to firm up on the proposals on price cap for gas imports and windfall levy could help to ease price pressures and provide further support for EUR.”