EUR/USD downside pressure intact – UOB

FX Strategists at UOB Group noted the pair’s downside sentiment stays unchanged in the near term.

Key Quotes

24-hour view: “The anticipated weakness exceeded our expectation as EUR dropped below the 1.1780 support to hit a low of 1.1761. The subsequent strong bounce from the low suggests that 1.1761 is a short-term bottom. From here, EUR is expected to consolidate its recent sharp drop and trade sideways. Expected range for today, 1.1785/1.1855”.

Next 1-3 weeks: “We highlighted yesterday (16 May, 1.1830) that the “immediate pressure is on the downside” and added, “further weakness to 1.1750 would not be surprising”. EUR subsequently hit a low of 1.1761 before rebounding. The price action reinforces our view wherein while the near-term outlook for EUR is negative, any weakness is unlikely to have enough momentum to move below last December’s low of 1.1715 (1.1750 is already a solid support). On the upside, only a move back above the ‘key resistance’ at 1.1900 (level adjusted lower from 1.1940) would indicate that the current downward 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.