Additional weak spot shouldn’t be dominated out; it’s unclear whether or not Euro (EUR) can break and maintain under 1.1200 towards US Greenback (USD). Within the longer run, to proceed to say no, EUR should first shut under 1.1200, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Additional weak spot shouldn’t be dominated out
24-HOUR VIEW: “EUR dropped to 1.1321 two days in the past. Within the early Asian session yesterday, when EUR was at 1.1335, we highlighted that ‘regardless of declining, EUR has not gained a lot momentum.’ We anticipated EUR to ‘consolidate between 1.1305 and 1.1375.’ Nonetheless, as a substitute of consolidating, EUR edged down to shut at 1.1292 (-0.32%). Within the early Asian session immediately, EUR plunged (the low thus far seems to be 1.1209). Additional weak spot shouldn’t be dominated, however the sharp drop appears extreme, and it’s unclear whether or not EUR can break and maintain under 1.1200. For now, the most important help at 1.1140 is unlikely to come back below risk. On the upside, resistance ranges are at 1.1275 and 1.1300.”
1-3 WEEKS VIEW: “We revised our EUR view from optimistic to impartial yesterday (28 Might, spot at 1.1335), indicating that ‘upward momentum has largely dissipated.’ We additionally indicated that EUR ‘is prone to commerce in a 1.1255/1.1420 vary for now.’ Though our revision was well timed, we didn’t count on EUR to drop under 1.1255 early immediately. To proceed to say no, EUR should first shut under 1.1200. The chance of EUR closing under 1.1200 will stay intact offered that the ‘sturdy resistance’ degree, at present at 1.1355 shouldn’t be breached. Wanting forward, under 1.1200, there’s a important help degree at 1.1140 (the present degree of the 55-day EMA indicated within the 1-3 months view under).”
