Upside momentum in EUR/USD loses vigour – UOB
|The prospects for further gains in EUR/USD now appear somewhat diminished, in the opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected EUR to ‘trade sideways between 1.1390 and 1.1445' yesterday. Our view for sideway-trading was not wrong even though EUR traded within a narrower range than expected (1.1390/1.1434). The quiet price actions offer no fresh clues and EUR could continue to trade sideways for today, likely between 1.1395 and 1.1440.”
Next 1-3 weeks: “Our view from yesterday (17 Jan, spot at 1.1410) still stands. As highlighted, upward momentum is beginning to wane and a break of 1.1390 (no change in ‘strong support’ level) would indicate that the positive phase in EUR that started in the middle of last week is unlikely to extend to 1.1515. Note that the ‘strong support’ level was tested during NY session but was not clearly breached (low of 1.1390). Looking ahead, a clear break of 1.1390 would indicate that EUR could consolidate and trade sideways.”
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.