UOB Group currency strategists note that it is expected that Any bearish movement in EUR / USD finds solid support at 1.2130.
Key Comments:
24 hour view: “The EUR / USD fell sharply to 1.2180 yesterday before closing on a soft tone at 1.2190 (-0.49%). The rapid decline appears to be ahead of itself, but there is room for EUR / USD weakness to test the main support at 1.2160. For today, the prospect of a sustained decline below this level is not high (next support is at 1.2130). Resistance is at 1.2210 followed by 1.2230 ”.
Next 1-3 weeks: “On Tuesday (May 25, EUR / USD at 1.2215), we held the view that EUR / USDD is likely to ‘trade between 1.2095 and 1.2245’. We add, ‘while EUR / USD could move above 1.2245, it has to close above 1.2265 before a sustained advance can be expected. ” Subsequently, the EUR / USD rose to 1.2266, hitting 1.2262 yesterday (May 26) before falling sharply. The strong and rapid retracement from a Significant resistance level indicates that the risk of a sustained EUR / USD rally has dissipated. Short-term risk is sloping lower, but at the moment, any weakness is expected to find solid support at 1.2130. Short term note, 1.2160 is already a strong support level. On the upside, a move back above 1.2265 would indicate that the current slight downward pressure has eased. “
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