In opinion of FX Strategists at UOB Group, EUR/USD is seen under pressure while below the 1.1980 level in the next weeks.
24-hour view: “Yesterday, we were of the view that the rebound in EUR ‘has room to extend but any advance is likely limited to a test of 1.1940’. While EUR advanced as expected, it did not quite test 1.1940 (high has been 1.1929). The bias still appears to be titled to the upside but while a break of 1.1940 would not be surprising, the strong resistance at 1.1980 is unlikely to come into the picture. Support is at 1.1900 followed by 1.1875.”
Next 1-3 weeks: “We have held a negative view in EUR since the start of the month. In our latest narrative from yesterday (09 Mar, spot at 1.1850), we highlighted that ‘we continue to expect EUR to move lower to 1.1800’. EUR subsequently dropped to 1.1834 before staging a robust rebound. Shorter-term momentum is beginning to wane but the overall negative phase is intact unless there is a break of 1.1980 (no change in ‘strong resistance’ level). In view of the oversold conditions, EUR could not afford to dither or the odds for a move to 1.1800 would diminish quickly.”