The pair could slip back to YTD lows at 1.1174 in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “EUR registered a range of 1.1201/1.1249 yesterday, relatively close to our expected range of 1.1205/1.1255. The subsequent weak daily closing in NY has increased the downside risk for EUR but in view of the lackluster momentum indicators, any decline is unlikely to challenge last month’s low at 1.1174 (next support is at 1.1145). On the upside, resistance is at 1.1230 but only a move above 1.1255 would indicate that the current downward pressure has eased”.
Next 1-3 weeks: “We highlighted in recent updates that a NY closing below 1.1220 would indicate that EUR is ready to “revisit the 07 Mar low of 1.1174″. While EUR closed marginally lower by -0.02% (1.1217) in NY last Friday, it is enough to indicate that there is room for EUR to revisit 1.1174. That said, downward momentum has not improved by much and the prospect for a sustained decline below 1.1174 is not high (next support levels are at 1.1145 followed 1.1110). On the upside, a move above 1.1300 would indicate the current mild downward pressure has eased”.
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