EUR/USD remains focused on 1.2000/10 – UOB
|FX Strategists at UOB Group noted further gains are expected in EUR/USD once the 1.2000/10 band is cleared.
Key Quotes
24-hour view: “We expected EUR to ‘trade sideways between 1.1935 and 1.1985’ last Friday. However, EUR traded within a higher range than expected (1.1949/1.1994). Further sideway-trading would not be surprising even though the weakened underlying tone suggests a lower trading range of 1.1935/1.1985.”
Next 1-3 weeks: “Our latest narrative was from last Thursday (15 Apr, spot at 1.1980) where we highlighted that ‘overbought shorter-term conditions could slow the pace of advance but a break of 1.2010 would not be surprising’. However, 1.2010 remains intact as EUR struggled to move above 1.2000 for the past couple of days. Conditions remain overbought and upward momentum is beginning to wane. Unless EUR breaks clearly above 1.2000/1.2010 within these couple of days, the chance or further EUR strength would diminish quickly. Conversely, a breach of 1.1915 (no change in ‘strong support’ level) would indicate that the EUR strength that started about 2 weeks ago has come to an end.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.