The currency strategists of the UOB Group see that the recovery of the EUR / USD could revisit the 1.1950 region In the next weeks.
Key Comments:
24 hour view: “We highlighted yesterday that ‘strong bullish momentum may’ nullify ‘current overbought conditions, although a sustained rise above 1.1915 is unlikely.’ Our view was not wrong as EUR / USD rose to 1.1914 before reversing. Conditions remain overbought and this, coupled with waning momentum, suggests that EUR / USD is unlikely to strengthen further. For today, EUR / USD is more likely to move sideways between 1.1845 and 1.1900 ” .
Next 1-3 weeks: “Yesterday (April 6, EUR / USD at 1.1815) we noticed that EUR / USD is ‘on a corrective bounce’. We highlight that ‘in view of the incipient buildup of momentum, any EUR / USD strength is likely to be capped at 1.1870 for now’. While our expectation of a stronger EUR / USD is correct, the pace of advance has been faster than expected (the EUR rose to 1.1877 during the American session). In other words, the EUR / USD rally could extend further. The next big resistance is at 1.1945. In general, the EUR / USD is expected to move with a positive bias as long as it does not move below 1.1770 (the ‘strong support’ level has risen from yesterday’s 1.1745 level). On a short-term note, 1.1820 is already a pretty strong level. “
.
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.
