In opinion of FX Strategists at UOB Group, EUR/USD is now poised for further retracements in the net weeks.
Key Quotes
24-hour view: “Our expectation for EUR to ‘decline further towards 1.1800’ did not quite materialize as it dropped to 1.1807 before closing at 1.1812 (- 0.31%). While downward momentum appears to be lackluster, the risk remains on the downside. However, EUR is unlikely to threaten the support at 1.1770. Resistance is at 1.1830 followed by 1.1855.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (24 Mar, spot at 1.1845). As highlighted, the current movement is viewed as the early stages of a weak phase in EUR that could extend lower to 1.1770, possibly 1.1740. On the upside, a break of 1.1900 (‘strong resistance’ level was at 1.1940 yesterday) would indicate that our view for a lower EUR is wrong.”
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