According to FX Strategists at UOB Group, the outlook on EUR/USD is now mixed and the pair is expected to navigate within a 1.0750/1.1000 range.
Key Quotes
24-hour view: “While we noted the ‘patchy upward momentum’ yesterday, we held the view that EUR ‘could move above 1.1000’. However, EUR plummeted to 1.0855, bounced up to 1.0937 during NY hours before dropping back down again. The overall risk has shifted to the downside but oversold conditions could ‘limit’ any further decline to 1.0815 (the 1.0855 low is acting as a minor support). On the upside, any recovery is likely to stay below 1.0955 (minor resistance is at 1.0935).”
Next 103 weeks: “After the relatively strong advance in EUR on Tuesday (14 Apr), we noted yesterday (15 Apr, spot at 1.0980) that ‘upward momentum is showing sign of picking up but at this stage, it is premature to expect the start of a sustained advance’. We added, ‘only a NY closing above 1.1030 would increase the odds for EUR to move towards the late-March peak of 1.1146’. However, we did not anticipate the sudden turnaround that sent EUR tumbling to an overnight low of 1.0855. Upward momentum has fizzled out and the overall outlook is mixed. From here, EUR could continue to trade in an undecided manner within the 1.0750/1.1000 range that we first indicated last Wednesday (08 Apr, spot at 1.0890).”
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