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EUR/USD faces short-term consolidation – UOB

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EUR/USD faces short-term consolidation – UOB

According to forex strategists from UOB Group, Lee Sue Ann and Quek Ser Leang, the EUR/USD could try to consolidate before a likely move towards 1.0350.

24 hour outlook: “Yesterday, we highlighted that the euro’s rapid decline could extend to 1.0400. We added that a sustained decline below this level seemed unlikely. Although our view was not wrong, as the euro subsequently fell to 1.0381, we did not expect the sharp rebound from the bottom (1.0488 New York high). bounce could first test 1.0505 before relaxing (strong resistance at 1.0535 is not expected to be threatened). To the downside, a break of 1.0430 (minor support is at 1.0450) would indicate that the euro is unlikely to bounce further.”

Next 1-3 weeks: “Yesterday we highlighted (June 30, pair at 1.0445) that the risk for the euro had shifted to the downside. We indicated that a break of 1.0400 would not be surprising, but strong support could be expected at 1.0350. Subsequently, the euro it broke above 1.0400 and fell as low as 1.0381 before rebounding sharply. short-term bearish momentum has subsided a bit and the euro could consolidate for a couple of days before attempting to approach 1.0350 (note that 1.0380 is acting as solid support now). To the upside, a break of 1.0535 (no change from yesterday’s ‘strong resistance’ level) would indicate that 1.0350 is out of the picture.”

Source: Fx Street

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