UOB Group currency strategists Lee Sue Ann and Quek Ser Leang note that EUR/USD could still try to move to 1.0725 before falling to 1.0700 In the next weeks.
Key comments
24 hour view: “Yesterday we highlighted that EUR/USD ‘could weaken further to 1.0755, but a sustained drop below this level is unlikely.’ EUR/USD subsequently fell to 1.0759 before closing little changed at 1.0786 (+0.06%) The downside pressure has eased and the current move is likely to be part of a consolidation phase. In other words, EUR/USD is likely to move sideways today. Expected to remain range bound at 1.0770 /1.0820”.
Next 1-3 weeks: “Our update from Monday (April 18, EUR/USD at 1.0805) still holds. As highlighted, the risk to EUR/USD is to the downside, although it may trade above strong support at 1.0755 for a while. couple of days (EUR/USD fell to 1.0759 yesterday before bouncing) Looking ahead a break of 1.0755 would shift focus to 1.0725 followed by 1.0700 Overall only a break of 1.0845 (no change in price level ‘strong resistance’ since yesterday) would indicate downside risk has dissipated.”
Source: Fx Street
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