EUR/USD still risks a move to 1.2080 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted EUR/USD still faces a probable drop to the 1.2080 region in the next weeks.

Key Quotes

24-hour view: “We expected EUR to trade within a 1.2130/1.2205 range yesterday. However, it dropped to 1.2109 before rebounding quickly and ended the day little changed at 1.2156 (-0.01%). Downward momentum has improved a tad and the bias is tilted to the downside. That said, any weakness is likely limited to a retest of the 1.2110 level. The next support at 1.2080 is unlikely to come under threat. On the upside, a break of 1.2190 would indicate the current mild downward pressure has eased (minor resistance is at 1.2170).”

Next 1-3 weeks: “We have held a negative view in EUR since the start of the week. However, EUR has not been able to make much headway on the downside. Shorter-term momentum is building up again and there is still chance for EUR to edge down towards the solid support at 1.2080. Barring a sudden surge in momentum, the prospect for a sustained decline below this level is not high (next support is at 1.2050). On the upside, a break of 1.2220 (‘strong resistance’ level previously at 1.2250) would indicate the current soft patch in EUR has stabilized.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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