Quek Ser Leang, Market Strategist at UOB Group, and Peter Chia, a senior currency strategist, suggest that the EUR/USD runs the risk of continuing to decline in the short term.
24 hour perspective: “Yesterday, we held the view that the EUR could weaken further, but a clear break of 1.0500 was unlikely. Apart from a brief dip to 1.0548 London time, however, the euro was mostly sideways. Prices they appear to be consolidating and sideways trading is likely to continue. Expected range for today: 1.0570/1.0645“.
Next 1-3 weeks: “After the EUR fell to a low of 1.0514, yesterday (March 16, pair at 1.0575) we highlighted that although the rapid decline appeared to be too fast and too soon, the risk of the EUR falling further had increased. And we added: “It remains to be seen if the euro can break the main support at 1.0470. For the moment, our opinion has not changed. In general, just a break of ‘strong resistance’ at 1.0680 (no change in level) would indicate that the downside risk has faded“.
Source: Fx Street
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