In opinion of FX Strategists at UOB Group, EUR/USD risks extra losses if 1.1770 is cleared.
Key Quotes
24-hour view: “Last Friday, we expected EUR to ‘consolidate and trade between 1.1805 and 1.1850’. Our view was not wrong as EUR subsequently traded within a range of 1.1807/1.1850. The underlying tone appears to have softened and the bias for today is on the downside. A dip below 1.1795 would not be surprising but the next major support at 1.1770 is unlikely to come into the picture. Resistance is at 1.1830 followed by 1.1850.”
Next 1-3 weeks: “Our view from late last week still stands. As highlighted, EUR is still consolidating within a 1.1795/1.1895 range. While downward momentum is showing tentative signs of picking up, only a daily closing below 1.1770 would indicate the start of a deeper pullback in EUR. At this stage, the prospect for EUR to close below 1.1770 is not high but it would remain intact unless EUR moves above 1.1850 within these few days.”
