EUR/USD faces downside risks near-term – UOB


FX Strategists at UOB Group noted EUR/USD risks further downside in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for EUR to dip below 1.2060 but any weakness is viewed as part of a 1.2050/1.2130 range’. The subsequent decline exceeded our expectation as EUR dropped to 1.2026. Downward momentum has improved, albeit not by much. There is scope for EUR to dip below 1.2020 first before a recovery can be expected. For today, the next support at 1.1985 is unlikely to come under threat. On the upside, a break of 1.2090 (minor resistance is at 1.2070) would indicate the current downward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (01 Mar, spot at 1.2085). As highlighted, ‘downside risk has increased and EUR could drop to 1.2020’. EUR subsequently dropped to 1.2026 and the risk is still on the downside. A break of 1.2020 would shift the focus to 1.1985. The current downside risk for EUR is deemed as intact as long as 1.2135 (‘strong resistance’ level was at 1.2170 yesterday) is not breached.”

 

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bulls need to cross 1.2060 to keep the reins

EUR/USD stays on the front foot, recently inactive, near seven-week top. 100-day SMA tests the upside break of the key resistance line, now support. Bullish MACD, sustained trading above 200-day SMA favor buyers.

EUR/USD News

GBP/USD: Refreshes monthly top, inches closer to 1.4000 ahead of UK employment data

GBP/USD bulls refrain from catching a breather after rising the most since January 12. The cable rises for the seventh consecutive day, needless to mention the previous day’s heaviest run-up in over three months. Traders seem to wait for the UK’s employment figures for March for fresh impulse.

GBP/USD News

EUR/USD: Bulls need to cross 1.2060 to keep the reins

EUR/USD stays on the front foot, recently inactive, near seven-week top. 100-day SMA tests the upside break of the key resistance line, now support. Bullish MACD, sustained trading above 200-day SMA favor buyers.

EUR/USD News

DOGE base targets at least 30% upside

Dogecoin price declined almost 50% from the April 16 high to the April 17 low, reminding speculators that DOGE did have two sides. Since the price low, the altcoin rallied close to the all-time high at $0.4532 by April 19. 

Read more

The 3 currencies to watch this week

All of the major currencies traded higher on Monday as investors continued to drive the U.S. dollar lower. When a rise in Treasury yields, sell-off in U.S. stocks, strong payrolls and retail sales reports can’t lift the dollar, some wonder if it is time to worry.

Read more

Forex MAJORS

Cryptocurrencies

Signatures