According to economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group, the prospects for a sustained decline below 1.0615 in the EUR/USD seem to be slowing down at the moment.
24 hour perspective: “We expected the EUR to weaken last Friday, but were of the opinion that it was unlikely to challenge the main support at 1.0615. Although the Euro broke 1.0615 (1.0611 low) in London time, it bounced strongly to end the day with up 0.24% (1.0694).The rebound amid oversold conditions suggests the euro is unlikely to weaken further.Today is more Euro likely to consolidate within 1.0650/1.0720 range“.
Next 1-3 weeks: “Our most recent analysis was last Thursday (Feb 16, pair at 1.0690), when we noted that bearish momentum was picking up again, but the EUR had to break and hold below 1.0655 before a decline was likely. We suggest that a clear break of 1.0655 would shift focus to 1.0615, followed by 1.0535.Although the Euro subsequently lost 1.0655 and 1.0615, it rebounded strongly from 1.0611 to end the day up 0.24% (1.0694) . He Bearish momentum has eased a bit on the strong bounce and the probability of a sustained Euro decline below 1.0615 is not high. That being said, only a break of 1.0740 (strong resistance level was at 1.0760 last Friday) would indicate that the current bearish pressure has eased.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
