Market strategist Quek Ser Leang and UOB Group senior currency strategist Peter Chia suggest that the sustained decline in EUR/USD has lost momentum lately.
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24 hour view: “Yesterday we highlighted that “EUR/USD is unlikely to weaken further” and expected it to “consolidate within a 1.0650/1.0720 range”. Our view was not wrong, although EUR/USD traded in a tighter range. than expected (1.0669/1.0704). Price developments offer no new clues and EUR/USD could continue to consolidate, probably between 1.0660 and 1.0710.”
Next 1-3 weeks: “We hold a negative view on EUR/USD since last Thursday. After EUR/USD fell to 1.0611 and rebounded strongly, yesterday (Feb 20, EUR/USD at 1.0685) we indicated that bearish momentum has waned a bit. little and that the probability of a sustained decline in EUR/USD below 1.0615 is not high. We remain of the same view. Overall, only a break of 1.0740 (no change from yesterday’s “strong resistance” level) would indicate “The current bearish pressure has eased. In other words, a break of 1.0740 would indicate that the EUR/USD could consolidate and range-bound for a while.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
