UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia stated that the probability of a go to 1.0750 in EUR/USD seems to be dropping momentum.
Key Quotes
24-hour view: “We indicated ultimate Friday that EUR ‘could damage under 1.0750 however is not going to be capable to attain the subsequent predominant guide at 1.0700’. We added, ‘a damage of 1.0820 would point out the weak point in EUR has stabilized’. EUR dipped to a low of 1.0758 in Asian alternate and then rebounded to a excessive of 1.0828 in NY trade. The cutting-edge charge moves are in all likelihood phase of a consolidation phase. Today, we assume EUR to alternate sideways between 1.0785 and 1.0845.”
Next 1-3 weeks: “Last Friday (19 May, spot at 1.0775), we indicated that EUR ‘is nonetheless susceptible and is possibly to spoil beneath 1.0750’. EUR eked out a sparkling two of 1.0758 in Asian alternate and then rebounded to give up the day at 1.0802 (+0.31%). While we proceed to maintain the view that EUR should spoil beneath 1.0750, after the rebound ultimate Friday, the probability of a clear damage of 1.0750 has diminished. That said, solely a ruin above 1.0860 (no alternate in ‘strong resistance’ stage from ultimate Friday) would point out the EUR weak point that started out extra than a week in the past has stabilized.”
