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FX Strategists at UOB Group noted EUR/USD now shifted the focus to the 1.1910 region in the next weeks.

Key Quotes

24-hour view: “We expected EUR to weaken yesterday but we were of the view that ‘the major support at 1.1985 is unlikely to come into the picture’. While our view for a lower EUR was not wrong, we did not anticipate the sudden and sharp sell-off that sent it to a low of 1.1960. Downward momentum is strong but oversold conditions suggest any weakness is unlikely to threaten the major support at 1.1910 (there is a relatively strong support at 1.1950). Resistance is at 1.1995 but only a break of 1.2025 would indicate the current weakness has stabilized.”

Next 1-3 weeks: “We have held a negative view in EUR since early this week. After EUR rebounded strongly from 1.1990, we noted on Wednesday (03 Mar, spot at 1.2085) that ‘downward momentum has waned but there is still a slim chance for EUR to make another run lower to 1.1985’. EUR made full use of the slim chance as it plunged to an overnight low of 1.1960. Downward momentum received a huge boost and the focus has shifted to next major support at 1.1910. The negative phase in EUR is deemed intact as long as it does not move above 1.2055 (‘strong resistance’ level previously at 1.2135).”