UOB Group’s FX Strategists noted EUR/USD risks a deeper pullback to the 1.1800 area in the near-term.
Key Quotes
24-hour view: “While we expected EUR to weaken last Friday, we were of the view that ‘any weakness is unlikely to threaten the major support at 1.1910’. However, EUR declined more than expected as it cracked 1.1910 and dropped to 1.1892. The swift and sharp decline appears to be running ahead of itself but the current weakness is not showing signs of stabilization just yet. There is room for EUR retest the 1.1890 level before a more sustained recovery can be expected. For today, the next support at 1.1850 is unlikely to come into the picture. On the upside, a break of 1.1975 would indicate the current weakness has stabilized (minor resistance is at 1.1945).”
Next 1-3 weeks: “We have held a negative view in EUR since the start of the month. As EUR declined as expected, in our latest narrative from last Friday (05 Mar, spot at 1.1965), we highlighted that ‘the focus has shifted to the major support at 1.1910’. Our view was correct as EUR breached 1.1910 and dropped to 1.1892 during NY hours on Friday. The outlook for EUR remains negative and further losses to 1.1800 would not be surprising. Only a break of 1.2020 (‘strong resistance’ level was at 1.2055 last Friday) would indicate the current negative phase in EUR has run its course.”
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.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.