Economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group suggest that the EUR/USD you will be facing further range limitation in the coming weeks.
24 hour perspective: “Our expectations for the EUR to trade sideways last Friday were wrong as it rallied as high as 1.0685. Although the bullish momentum has not improved much, the EUR has room to test 1.0725. The next resistance at 1.0760 is not expected to be threatened. On the downside, a break of 1.0625 (minor support is at 1.0645) would indicate that the euro does not advance further.”
Next 1-3 weeks: “After the EUR plunged to a low of 1.0514 last Thursday (March 16, pair at 1.0575) we highlighted that the risk of the EUR further falling had increased, but it remained to be seen if it could break the main support of 1.0470. We add that “only a break above the strong resistance at 1.0680 would indicate that the downside risk had faded. On Friday, the Euro bounced past our strong resistance level at 1.0680 (the high was 1.0685). The bearish pressure has eased and the euro seems to be trading in a consolidation phase, probably in a wide range between 1.0600 and 1.0800“.
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.
