FX Strategists at UOB Group believe that further retracements in EUR/USD now look unlikely in the near-term.
24-hour view: “We indicated yesterday that ‘despite making fresh low, the price action lacks momentum and the downside risk appears to be limited’. EUR subsequently traded between 1.1000 and 1.1038, narrower than our expected sideway-trading range of 1.0995/1.1040. While the underlying tone has firmed somewhat, we continue to expect EUR to trade sideways for now, albeit at a higher range of 1.1010/1.1060.”
Next 1-3 weeks: “As highlighted, despite the recent weakness, ‘downward momentum has not improved by all that much’. EUR subsequently rebounded and ended the day on a relatively firm note (NY close of 1.1030, +0.19%). The price action has increased the risk of a break of 1.1070 (no change in ‘strong resistance’ level) and a move above this level would indicate that the weakness in EUR that started earlier this month has run its course. In other words, the weak phase appears to be close to ending.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.