UOB Group currency strategists Lee Sue Ann and Quek Ser Leang suggest that EUR/USD could revisit the 1.0550 zone In the next weeks.
Key comments
24 hour view: “While we expected EUR/USD to weaken yesterday, we were of the view that ‘sustained decline below 1.0670 is unlikely’. The anticipated weakness exceeded our expectations as EUR/USD fell to a low of 1.0634. EUR/USD could weaken further but conditions remain oversold and while it could drop below 1.0600 it may not be able to hold below this level (next support is at 1.0550) resistance is at 1.0675, but only a break of 1.0700 would indicate that the current weakness has stabilized.”
Next 1-3 weeks: “We turned EUR/USD negative yesterday (Apr 26, EUR/USD at 1.0710) and took the view that ‘a break of the March 2020 low at 1.0635 would not be surprising’. Our view was not wrong, as EUR/USD fell to a low of 1.0634 during the New York session Downside momentum is strong and we continue to expect EUR/USD to weaken, possibly to 1.0550 Looking to the upside, the ‘strong resistance’ at 1.0760 (the level was 1.0820 yesterday) is under threat, at least within 1-2 days.”
Source: Fx Street
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