Quek Ser Leang, UOB Group Market Strategist, and Peter Chia, Senior Currency Strategist, suggest that EUR/USD could extend the consolidation move unless it convincingly breaks the 1.0925 level.
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24 hour view: “Our expectations for a lower EUR/USD did not materialize as it fell briefly to 1.0931 early in the American session yesterday, bounced to 1.0989 and then traded sideways throughout the rest of the session. Price moves appear to form part of a consolidation and EUR/USD is likely to trade sideways today, between 1.0925 and 1.0995.”
Next 1-3 weeks: “On Tuesday (April 18, EUR/USD at 1.0925), we noted that ‘bearish momentum appears to be consolidating, albeit timidly.’ We expected EUR/USD to trade with a bearish bias, but were of the view that any decline would be met with solid support at 1.0830 EUR/USD has been unable to move lower and momentum is starting to fade To rejuvenate bearish momentum EUR/USD has to clearly break below 1.0925 in the next 1-2 days or it is more likely to trade sideways rather than with a bearish bias. Conversely, a break of 1.1025 (no change at the ‘strong resistance’ level) would also indicate that EUR/USD is likely to trade sideways.”
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.
