Still room for a move to 1.0820 – UOB

FX Strategists at UOB Group Quek Ser Leang and Lee Sue Ann famous EUR/USD may nonetheless drop to 1.0855 after which 1.0820 amidst the present unfavourable outlook.

Key Quotes

24-hour view: “We highlighted yesterday ‘downward momentum has waned considerably and this coupled with nonetheless oversold circumstances suggests EUR is unlikely to weaken a lot additional’. We anticipated EUR to ‘to commerce between 1.0870 and 1.0935’. EUR subsequently dipped to 1.0863 earlier than settling at 1.0878 (-0.14%). Downward momentum has improved, albeit not by a lot. From right here, EUR may dip beneath 1.0855 however might not have the ability to preserve a foothold beneath this stage. The subsequent assist at 1.0820 is unlikely to come back underneath risk for in the present day. Resistance is at 1.0905 adopted by 1.0925.”

Subsequent 1-3 weeks: “Our narrative from two days in the past (06 Apr, spot at 1.0905) nonetheless stands. As highlighted, the outlook for EUR remains to be unfavourable and the subsequent ranges to concentrate on are at 1.0855 and 1.0820. General, solely a breach of 1.0955 (‘sturdy resistance’ stage was at 1.0975 yesterday) would point out that the present downward strain has eased.”