UOB Group currency strategists note that the EUR / USD has now gone into a negative phase and could test 1.1770 In the next weeks.
Key Comments:
24 hour view: “The quick and sharp fall of the EUR / USD to a low of 1.1840 the day before was a surprise. While the rapid decline is oversold, the strong momentum to the downside suggests that the EUR / USD could fall further towards 1.1800. For today, the EUR / USD is unlikely to threaten the next support at 1.1770. Resistance is at 1.1880 followed by 1.1910 “.
Next 1-3 weeks: “We expected the EUR / USD to move sideways for more than a week. In our latest narrative on Tuesday (March 22, EUR / USD at 1.1890), we highlighted that ‘looking ahead, the risk of a breakout of the floor of the expected range of 1.1840 / 1.2000 appears to be higher’. We add, ‘EUR / USD has to close below 1.1840 before a sustained decline can be expected.’ EUR / USD fell to 1.1840 during the American session yesterday before falling below strong support after the close of the session. The rapid improvement in the downside momentum indicates that the sideways trading phase has come to an end. The current move is seen as the first stages of a weak phase in EUR / USD that could extend lower to 1.1770, possibly 1.1740. On the upside, a breakout of 1.1940 would indicate that our view of a lower EUR / USD is wrong. “
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
