Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia suggest a breakdown of 1.0760 could motivate EUR/USD to attempt some consolidation.
24-hour view: “We highlighted last Friday that ‘despite the relatively large gains, momentum has not improved by much’. We added, ‘the risk for EUR is still on the upside even though 1.0900 is expected to offer solid resistance’. However, EUR did not challenge 1.0900 as it dropped from 1.0867 to 1.0778 before closing at 1.0828 (-0.17%). The price actions appear to be part of a consolidation phase. Today, EUR is likely to trade sideways between 1.0780 and 1.0870.”
Next 1-3: “We highlighted last Friday (13 Jan, spot at 1.0850) that the improved upward momentum suggests further EUR strength. We did not expect the pullback to a low of 1.0778. The price actions have led to an easing in momentum and a break of 1.0760 (no change in ‘strong support’ level) would indicate that EUR could consolidate first before making another attempt to advance toward the resistance at 1.0900 later on.”
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.