In the opinion of the currency strategists of UOB Group, the EUR / USD is at risk of further declines in the coming weeks.
24 hour perspective: “Yesterday we highlighted that the strong fall in the EUR had room to test the main support at 1.1975 first before stabilization could be expected. The euro subsequently fell to 1.1984 before trading sideways for the rest of the sessions. The underlying tone still seems to be a little soft and we continue to see the possibility of testing 1.1975. However, a sustained decline below this level is unlikely (next support at 1.1945). The resistance is at 1.2025 followed by 1.2045 “.
Next 1-3 weeks: “We continue to maintain the same vision as two days ago (May 3, even at 1.2030). As highlighted, the short-term bias is tilting to the downside, but the EUR has to break out of the main support at 1.1975 before a more sustained (and substantial) pullback can be expected. The bearish momentum has improved and a breakout of 1.1975 would suggest that the EUR could weaken to 1.1920. The current downside pressure is considered intact as long as the euro does not move above 1.2080 (the ‘strong resistance’ level was previously 1.2105). “
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
