Further losses could drag EUR/USD to 1.0770 in the next few weeks, according to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.
24-hour view: EUR dipped to 1.0827 last Friday before rebounding to close little changed at 1.0881 (-0.05%). Yesterday (Monday), we indicated that “while downward pressure appears to have eased, EUR could dip to 1.0810 before a more sustained recovery is likely.” In NY trade, EUR dropped to 1.0802 before rebounding. This time around, downward pressure has eased, and EUR is unlikely to weaken much further. Today, EUR is more likely to trade in a range, probably between 1.0800 and 1.0870.
Next 1-3 weeks: Last Friday (01 Dec, spot at 1.0895), we noted that “upward momentum has faded, and downward momentum has increased a tad.” We expected EUR to “edge lower towards 1.0810.” In line with our expectations, EUR dropped to a low of 1.0802 yesterday (04 Dec). While downward momentum has increased further, it is not enough to suggest that EUR is ready to decline in a sustained manner. EUR has to break and stay below 1.0770 before a sustained decline is likely. The chance of EUR breaking clearly below 1.0770 is not high for now, but it will remain intact unless EUR breaks above the ‘strong resistance’ at 1.0900 (level was at 1.0965 yesterday).
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.