FX Strategists at UOB Group noted the prospects of further decline in EUR/USD appear to be losing momentum.
Key Quotes
24-hour view: “While we indicated yesterday that ‘downward momentum has slowed’, we expected EUR to trade between 1.0600 and 1.0800. However, EUR rose to a high of 1.0827 before ending the day on a relatively firm note at 1.0721 (+0.25%). The recovery appears to have scope to extend to 1.0880. At this stage, the prospect for a sustained rise above this level is not high. Support is at 1.0730 followed by 1.0670.”
Next 1-3 weeks: “EUR eked out a fresh low of 1.0635 yesterday (23 Mar) before rebounding to close higher for the day. Downward momentum is beginning to wane and the sharp fall that started about 2 weeks ago is showing tentative signs of tiring. However, only a break of 1.0940 (‘strong resistance’ previously at 1.1000) would indicate that the weakness has stabilized. Until then, further fresh low is not ruled out but the prospect is beginning to dim.”
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