Currency strategists at UOB Group noted that the EUR/USD now turned attention to a likely test of the 1.0805 level in the near term.
24 hour outlook: “Last Friday, we highlighted that rapidly improving bearish momentum suggested that the EUR could break major support at 1.1000. And added that the next support below this level was 1.0965. While our view on a weaker Euro is not was wrong, we didn’t anticipate the sell-off as it tumbled 1.25% (NY close 1.0926), its biggest one-day drop since March 2020. EUR extended its decline during the early Asian session and a further decline seems likely. next support is at an important level at 1.0805. The resistance appears at 1.0895 followed by 1.0925.”
Next 1-3 weeks: “In our latest narrative from last Friday (March 04, pair at 1.1025), we highlighted the vulnerability of the EUR and indicated that a break of 1.1000 could potentially lead to a further sharp drop for the single currency, as the next level of support was at 1.1900 our view was not wrong as the euro tumbled to 1.0884 before extending its decline during early Asian hours the EUR remains clearly weak and the next level to focus on is 1.0805 this is a long term support and a clear break of this level could lead to further acceleration to the downside (next support is at 1.0740). The risk of further weakness is intact as long as the EUR does not move above 1.1000 (the “strong resistance” level was at 1.1125 last Friday). In the short term, 1.0925 is already a pretty solid resistance level.”
Source: Fx Street
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