Forex Strategists UOB Group noted that the EUR/USD it is at risk of further downside as long as it is below the 1.1400 area.
24 hour outlook: “Our view that the EUR weakened further amid oversold conditions was wrong as it rallied sharply to end the day 0.45% higher (1.1356). While the upward momentum has not improved much, there is room for the bounce to spread out. That said, any advance unlikely to threaten strong resistance at 1.1400 (1.1380 is already quite a strong level). On the downside, a gap to 1.1315 (minor support is at 1.1335) would indicate that the current slight upward pressure has eased.”
Next 1-3 weeks: “Yesterday (Feb 15, pair at 1.1305), we highlighted that the EUR was likely to weaken further and the next level to watch is at 1.1240. We did not anticipate the subsequent sharp bounce. However, our “strong resistance” level ” at 1.1400 remains intact and for now there is no change in our opinion. That said, short-term oversold conditions suggest it may take a while before the EUR heads lower. Overall, the downside risk is intact unless EUR moves above 1.1400 euros (no change in yesterday’s ‘strong resistance’ level)”.
Source: Fx Street
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