In response to FX Strategists at UOB Group, a transfer beneath 1.1770 in EUR/USD appears to be shedding momentum in the intervening time.
24-hour view: “Yesterday, we held the view that ‘the speedy decline from the excessive has scope to increase decrease’. Our expectations didn’t materialize as EUR traded in a quiet method between 1.1797 and 1.1832. Momentum indicators are principally impartial and EUR is more likely to commerce sideways for in the present day, anticipated to be inside a 1.1790/1.1835 vary.”
Subsequent 1-3 weeks: “Two days in the past (14 Sep, spot at 1.1810), we highlighted that so long as EUR stays beneath 1.1850, there may be scope for EUR to shut beneath 1.1770. There is no such thing as a change in our view for now though the quiet worth actions the previous couple of days have resulted in a loss in downward momentum. In different phrases, the prospect for EUR to shut beneath 1.1770 is starting to decrease. With a view to revive the flagging momentum, EUR has to maneuver and keep beneath 1.1790 inside these 1 to 2 days or a break of 1.1850 wouldn’t be shocking (and would point out that EUR may commerce sideways for a time period).”