EUR/USD risks a deeper pullback below 1.0470 – UOB
|According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, further weakness lies ahead for EUR/USD on a break below 1.0470.
Key Quotes
24-hour view: “Yesterday, we highlighted that EUR ‘could edge lower but any weakness is expected to encounter support at 1.0500’. EUR did not quite ‘edge lower’ as it plummeted to 1.0500, rebounded quickly to 1.0576 before dropping back down to close slightly lower at 1.0511 (0.15%). Despite the choppy price actions, the underlying tone has softened and the bias for today is on the downside. However, the chance of EUR breaking the major support at 1.0470 is not high. Resistance is at 1.0540 followed by 1.0560.”
Next 1-3 weeks: “Last Friday (06 May, spot at 1.0540), we highlighted that EUR has to close below the solid support at 1.0470 before a sustained decline is likely. There is no change in our view for now even though shorter-term downward momentum has weakened a tad and the chance for EUR to close below 1.0470 has increased slightly. Overall, only a break of 1.0605 would indicate that the chance for EUR to close below 1.0470 has dissipated. Looking ahead, the next support below 1.0470 is at 1.0420.”
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.