Quek Ser Leang, Market Strategist at UOB Group, and Peter Chia, Senior Currency Strategist, point out that EUR/USD weakness appears to have lost some momentum.
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24-hour outlook: Yesterday we were of the opinion that “the oversold EUR/USD has room to fall further to 1.0470 before stabilization is likely”, but the EUR/USD did not fall further. On the contrary, it rebounded strongly from a low of 1.0489 to 1.0578. The rebound appears to be getting ahead of itself, and EUR/USD is unlikely to advance much further. Today, the euro is more likely to trade within a range, probably between 1.0525 and 1.0585.
Next 1-3 weeks: EUR/USD rebounded strongly yesterday and closed up 0.56% (American session close at 1.0559). Although our “strong resistance” level of 1.0585 has yet to be broken, the bearish momentum has decreased considerably, and the probability of EUR/USD breaking below the yearly low near 1.0480 has also decreased considerably. In other words, the EUR/USD decline that started this week could have bottomed out at 1.0486 (Wednesday’s low).
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.
