Lee Sue Ann, an economist at UOB Group, and Quek Ser Leang, a market strategist, point out that he EUR/USD it faces further weakness once it breaks above 1.0615.
24 hour perspective: “Yesterday, we held the view that the EUR was likely to consolidate between 1.0660 and 1.0710. Rather than consolidate, the Euro traded relatively choppy as it peaked at 1.0697 and quickly fell to 1.0636 before closing at 1.0646 (-0.34%) Bearish momentum has improved slightly and the Euro is likely to continue lower Given the lack of momentum, a sustained decline below the main support of 1.0615 is unlikely today. Resistance is at 1.0670, followed by 1.0695″.
Next 1-3 weeks: “In our last analysis two days ago (Feb 20, pair at 1.0685), we highlighted that the bearish momentum had waned and the probability of a sustained decline of the euro below 1.0615 was not high. Yesterday, the euro fell to 1.0636 before settling at 1.0646 (-0.34%). Bearish momentum has increased, although not by much. Although the Euro could break below 1.0615, it has to hold below this level before further weakness is likely. In Overall, only a break of 1.0725 (formerly strong resistance level at 1.0740) would indicate that the Euro weakness started late last week has stabilized, Looking ahead, the next support level below 1.0615 is at 1.0570 “.
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.
