In the opinion of the currency strategists at UOB Group, EUR / USD risks further losses as long as it trades below 1.2250.
Key Comments:
24 hour view: “We highlighted yesterday that ‘a further EUR / USD advance is not ruled out, but a clear breakout of 1.2250 is unlikely’. While EUR / USD initially moved higher, it fell sharply after hitting 1.2222 (low 1.2138) Despite the relatively rapid decline, the downside momentum has barely improved and the outlook for today is mixed. Overall, the EUR / USD is likely to consolidate and move within a range of 1.2130 / 1.2205 “.
Next 1-3 weeks: “Yesterday, we highlighted that ‘a breakout of 1.2250 would indicate that EUR / USD is not ready to move to 1.2080’. We added, ‘to rejuvenate the weakening of the bearish momentum, EUR / USD has to move and stay below 1.2155 at these 1-2 days or 1.2080 is unlikely to enter the scene. ” While the 1.2250 level is still intact, as EUR / USD retreated from a high of 1.2222, the short-term bearish momentum has not improved much. That said, as long as 1.2250 is intact, there is room for another downside momentum, but this has to happen within these few days or the bearish momentum will quickly fade and this could cause the EUR / USD to move sideways instead. to get off “.
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