Rebound in EUR/USD seen as corrective – UOB

Pablo Piovano FXStreet

In view of FX Strategists at UOB Group, the rebound in spot is seen as corrective only and it is unlikely to test the 1.1250 area.

Key Quotes

24-hour view: “We highlighted yesterday the “decline in EUR could extend lower but any weakness is viewed as a lower trading range of 1.1080/1.1140”. While EUR drifted close to the bottom of the expected range and touched 1.1084, the 24-hour range of 1.1084/1.1115 was narrower than anticipated. The underlying tone still appears to be on the soft side and EUR could continue to drift lower from here. That said, a break of the solid 1.1050 support would come as a surprise (there is another support at 1.1070). On the upside, only a move above 1.1120 would indicate that the current mild downward pressure has eased”.

Next 1-3 weeks: “There is not much to add to the update from yesterday (26 Aug, spot at 1.1145). As highlighted, the current movement in EUR is viewed as a corrective rebound that has room to extend higher. However, the month-to-date high near 1.1250 is a solid resistance and this level could be out of reach. After yesterday’s rapid retreat, 1.1180 is already quite a strong level ahead of 1.1220 and 1.1250. On the downside, a break of 1.1050 would indicate that the current upward pressure has eased”.

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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