Rebound in EUR/USD seen as corrective – UOB
|In view of FX Strategists at UOB Group, the rebound in spot is seen as corrective only and it is unlikely to test the 1.1250 area.
Key Quotes
24-hour view: “We highlighted yesterday the “decline in EUR could extend lower but any weakness is viewed as a lower trading range of 1.1080/1.1140”. While EUR drifted close to the bottom of the expected range and touched 1.1084, the 24-hour range of 1.1084/1.1115 was narrower than anticipated. The underlying tone still appears to be on the soft side and EUR could continue to drift lower from here. That said, a break of the solid 1.1050 support would come as a surprise (there is another support at 1.1070). On the upside, only a move above 1.1120 would indicate that the current mild downward pressure has eased”.
Next 1-3 weeks: “There is not much to add to the update from yesterday (26 Aug, spot at 1.1145). As highlighted, the current movement in EUR is viewed as a corrective rebound that has room to extend higher. However, the month-to-date high near 1.1250 is a solid resistance and this level could be out of reach. After yesterday’s rapid retreat, 1.1180 is already quite a strong level ahead of 1.1220 and 1.1250. On the downside, a break of 1.1050 would indicate that the current upward pressure has eased”.
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.