Lee Sue Ann, economist at UOB Group, and Quek Ser Leang, a market strategist, point out that the EUR/USD is at risk of a deeper pullback below the 1.0655 level in the near term.
24 hour perspective: “Yesterday, we held the view that the EUR could test the 1.0655 level before a more sustained rally was likely. While our view was not wrong, as it bounced from a low of 1.0653, the rally did not win plenty of traction.At present, the risk remains to the downside, but although the Euro could fall back below 1.0655, it is unlikely to challenge the main support at 1.0615. Resistance is at 1.0715, followed by 1.0730″.
Next 1-3 weeks: “We continue to hold the same view as yesterday (Feb 16, pair at 1.0690). As highlighted, the bearish momentum is picking up again, but the Euro has to break and hold below 1.0655 before a sustained decline is likely. The possibility of a sustained decline will increase as long as the Euro does not break above 1.0760 (strong resistance level unchanged) in the coming days. Looking ahead, a clear break of 1.0655 will shift attention towards 1.0615, followed by 1.0535.”
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.
