FX Strategists at UOB Group suggested EUR/USD could attempt some consolidation in the near term albeit with an upside bias.
24-hour view: “EUR plunged to 1.0925 yesterday, just one pip above the early September low of 1.0924 before rocketing back up to end the day higher by +0.47% (1.1061). While the sudden surge higher appears to be running ahead of itself, there is scope for EUR to move above the strong 1.1085 resistance (this level was tested overnight and last week). For today, 1.1110 is likely out of reach. Support is at 1.1020 followed by 1.0990”.
Next 1-3 weeks: “While we highlighted yesterday the “risk of a retest of the early Sep low of 1.0924 has increased”, we did not expect the level to be tested within hours as EUR crashed to 1.0925 (after ECB) before surging back up to a high of 1.1086 during late NY hours. The outsized 1-day range of 161 pips (second largest 1-day range in 2019) has clouded the near-term outlook. For now, we expect EUR to trade sideways within a broad 1.0925/1.1130 range. If the short-term volatility were to ease in the next few days, the expected range would be narrowed. Looking ahead, the ‘failure’ to crack 1.0924 coupled with the sharp upswing suggests the bias is tilted to the upside. That said, EUR has to move clearly above 1.1130 before a sustained advance can be expected”.
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.