The currency strategists of UOB Group noted that the EUR / USD faces the probability of a dip to the 1.2020 levels in the coming weeks.
24 hour perspective: “While our expectation for the euro to weaken last Friday was correct, we underestimated the downside momentum as the euro plunged to 1.2060 (in our opinion any weakness is likely to be capped at 1.2100). The sharp and rapid decline is heavily oversold and sustained weakness is unlikely to continue. Having said that, there is room for the EUR to fall below 1.2060, but any weakness is considered part of a 1.2050 / 1.2130 range. In other words, the euro is not expected to move below 1.2050 on a sustained basis. “
Next 1-3 weeks: “Last Friday (Feb 26, pair at 1.2155), we highlighted that the buildup of momentum had faded and we expected the EUR to trade between 1.2060 and 1.2230. However, we did not anticipate how quickly the euro approached the bottom of range (fell to 1.2060 during Friday’s New York session). Price actions have increased downside risk for the shared currency. While short-term oversold conditions could lead to consolidation first, Unless it moves above 1.2170 (‘strong resistance’ level), there is a high probability that the EUR will fall to 1.2020 “.
.
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.
