The FX Strategists of UOB Group, Quek Ser Leang and Lee Sue Ann, noted that the EUR/USD could still drop to 1.0855 and then 1.0820 amid current negative outlook.
24 hour outlook: “We highlighted yesterday that the downward momentum had eased somewhat and this, coupled with still oversold conditions, suggested that the EUR was unlikely to weaken much further. The EUR was expected to trade between 1.0870 and 1.0935. Subsequently, Euro dipped to 1.0863 before settling at 1.0878 (-0.14%) Downside momentum has improved, though not by much From here, the single currency could drop below 1.0855, but may not be able to maintain a foothold below this level. The next support at 1.0820 is unlikely to be threatened today. Resistance is at 1.0905 followed by 1.0925.”
Next 1-3 weeks: “Our narrative from two days ago (Apr 06, pair at 1.0905) still stands. As we highlighted, the outlook for the EUR remains negative and the next levels to focus on are 1.0855 and 1.0820. Overall, only a gap of 1.0955 (the ‘strong resistance’ level was at 1.0975 yesterday) would indicate that the current downward pressure has eased.”
Source: Fx Street
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