Forex strategists at UOB Group noted that the EUR/USD remains focused on a potential test of the 1.0805 level in the coming weeks.
24 hour outlook: “We expected the EUR to weaken yesterday, but signaled that the next support is a major level at 1.0805. The euro weakened as expected, but rallied sharply from 1.0804. Deeply oversold conditions suggest the single currency is unlikely to weaken further. At the moment, it is more EUR likely to consolidate and trade between 1.0805 and 1.0925.”
Next 1-3 weeks: “Our update from yesterday (March 07, pair at 1.0875) still stands. As highlighted, the EUR remains clearly weak and the next level to focus on is major long-term support at 1.0805. Note that the euro subsequently dipped to 1.0804 before rallying. a clear break of 1.0805 could lead to a quick decline towards 1.0740. The risk of further weakness remains intact as long as the EUR does not move above 1.1000 (no change from yesterday’s ‘strong resistance’ level).”
Source: Fx Street
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