The currency strategists of UOB Group noted that the EUR / USD positive phase appears to be over and is now expected to trade sideways in the coming weeks.
24 hour perspective: “Our expectation for the EUR to rise to 1.2360 was incorrect as it sank to 1.2243 after hitting a high of 1.2345. The rapid descent seemed to overtake itself, but there is scope for the EUR to test 1.2225 first before current weakness stabilizes. Resistance is at 1.2295 followed by 1.2320 ”.
Next 1-3 weeks: “The sudden sharp drop in the EUR was a surprise. While our strong support level at 1.2240 is still intact (yesterday’s low of 1.2243), the bullish momentum has dissipated. In other words, the positive phase in EUR that started earlier this week has come to an end (we expected a move to 1.2360). The current move is considered the early stages of a consolidation and EUR is expected to trade between 1.2195 and 1.2350 over a period of time“.
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