EUR/USD: The euro-dollar forms a bullish wedge according to our technical analysis (Maybank)

Maybank believes that price action still points to the formation of a bullish wedge according to its technical analysis.

"The EUR/USD has evolved around 1.08. Price action still shows the formation of a bullish wedge, characterised by higher highs and higher troughs, moving between 2 ascending and converging trend lines. The resistance remains at 1.08. Beyond that would put the next resistance level at 1.0890. A decisive move above 1.0890 would cancel out our bearish bias.

We are waiting for the pair to fall below the support level at 1.0680 for bearish traders to take control. This would rely on a strengthening of monetary policy divergence.

The German Finance Minister said the EUR is too low for Germany and that monetary expansion has boosted Germany's trade surplus. Beyond 1.0680, we see support levels around 1.06 and 1.0550."