EUR/USD: Downside unlikely to break clearly below 1.0440 – UOB Group

The Euro (EUR) could go down; Since momentum is not strong, any decline is unlikely to break clearly below 1.0440. In the long term, a slight increase in momentum is not enough to signal a sustained decline; The EUR must clearly break below 1.0440 first, say UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

EUR must clearly break below 1.0440 first

24-HOUR VIEW: “Yesterday we held the view that the EUR ‘will likely trade in a range of 1.0475/1.0535’. However, the EUR traded erratically between 1.0462 and 1.0530 before settling at 1.0467 (-0. 26%). Despite the erratic price movements, there has been a slight increase in bearish momentum. Today, the EUR could turn lower, but since the momentum is not strong for now, any decline is unlikely to break clearly below 1.0440. Resistance is at 1.0490; a break of 1.0505 would indicate that the slight bearish pressure has disappeared. “

1-3 WEEK VIEW: “Our latest narrative was from two days ago (December 11, spot at 1.0530), where ‘the current price movements are likely part of a range trading phase, which is expected to be between 1.0465 and 1.0610.’ Yesterday, the EUR dipped slightly below 1.0465, touching a low of 1.0462. The slight increase in momentum is not enough to signal the start of a sustained decline. Looking ahead, only a clear break below 1.0440 would suggest the. EUR is ready to go down to 1.0400. The probability of EUR breaking clearly below 1.0440 seems low for now, but will remain intact as long as it does not break. break the 1.0540 level.”

Source: Fx Street

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