UOB Group currency strategists Lee Sue Ann and Quek Ser Leang note that a break above 1.0050 should ease the current bearish pressure around EUR/USD.
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24 hour view: “We were expecting EUR/USD to ‘rise’ yesterday, but opined that ‘any advance is unlikely to challenge major resistance at 1.0070’. Added ‘further resistance at 1.0050’. EUR/USD subsequently rose briefly to 1.0050 , before falling sharply to a low of 0.9953 during the New York session.The rapid decline has gained momentum and EUR/USD is likely to continue lower today.That said, any weakness is unlikely to break the solid support at 0.9900 (There is another support at 0.9930.) On the other hand, a break of the resistance at 1.0025 (minor resistance is at 1.0000) would indicate that the current bearish pressure has subsided.”
Next 1 to 3 weeks: “Our last story was last Wednesday (Sep 14, EUR/USD at 0.9980), in which, although EUR/USD is under pressure, a sustained decline below major support at 0.9900 seems unlikely. For now no change in our opinion.To the upside, the breakout of 1.0050 (the “strong resistance” level was at 1.0070 yesterday) would indicate that the current bearish pressure has eased.”
Source: Fx Street
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