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EUR / USD now focused on 1.1980

UOB Group currency strategists expect more gains on the EUR / USD as long as it remains above the 1.1980 level in the coming days.

Key Comments:

24 hour view: “We highlighted yesterday that ‘the bullish momentum is strong and the EUR / USD is likely to continue to advance.’ We added, ‘the yearly high at 1.2011 could be out of reach.’ While our opinion was not wrong, as the EUR / USD rose to a high of 1,2003, the subsequent selloff that sent it to a low of 1.1922 was a surprise. The rapid loss of momentum suggests that the high of 1.2003 is a short-term high and this level is not expected to break. scene for today. Overall, the EUR is likely to consolidate and move between 1.1900 and 1.1980 “.

Next 1-3 weeks: “Yesterday, we indicated that ‘a breakout of 1.1980 would shift focus to the yearly high at 1.2011.’ While the EUR strengthened as expected, the sharp decline from the 1.2003 high has reduced bullish momentum considerably. Chances of further EUR / USD strengths have declined unless the pair can move and stay above 1.1980 in these 1-2 days. Otherwise, a breakout of 1.1900 (no change at the ‘strong support’ level) would indicate that 1.2003 it’s a short-term high and the EUR / USD could move sideways for a period of time. “

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