According to FX Strategists at UOB Group, the bearish note in EUR/USD remains unaltered for the time being.
Key Quotes
24-hour view: “EUR traded between 1.0820 and 1.0850 yesterday, narrower than our expected sideway-trading range of 1.0820/1.0860. The price action is viewed as an on-going consolidation phase and further sideway-trading would not be surprising. Expected range for today, 1.0820/1.0860.”
Next 1-3 weeks: “EUR eked out a fresh ‘lower low’ of 1.0826 last Friday before closing at 1.0830 (-0.09%). While the weak phase that started more than a week is still intact, the combination of waning momentum and oversold conditions suggest that a bottom may not be far away. As highlighted early last Friday (14 Feb, spot at 1.0840), while a dip below 1.0810 (we first indicated this level last Monday) would not be surprising, the next support at 1.0770 could be out of reach. On the upside, a move above 1.0890 (‘strong resistance’ was at 1.0910 last Friday) would indicate the current weakness in EUR has run its course.”
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