Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group endorse the possibility of EUR/USD breaking beneath 1.0750 on a sustainable trend has misplaced some momentum.
Key Quotes
24-hour view: “We indicated the day gone by that ‘the modern charge actions are probably section of a consolidation phase’ and we anticipated EUR to alternate sideways between 1.0785 and 1.0845. Our view of sideways buying and selling was once right even even though EUR traded in a narrower vary than predicted (1.0794/1.0831). The charge actions provide no sparkling clues and we proceed to anticipate EUR to exchange sideways between 1.0785 and 1.0845.”
Next 1-3 weeks: “Our replace from the day past (22 May, spot at 1.0820) nonetheless stands. As highlighted, the probability of EUR breaking honestly under 1.0750 has diminished. However, solely a destroy above 1.0860 (no exchange in ‘strong resistance’ level) would point out the EUR weak spot that began greater than a week in the past has stabilized. In order no longer to lose similarly momentum, EUR has to ruin and continue to be under 1.0785 in the subsequent 1-2 days or a breach of the ‘strong resistance’ at 1.0860 will no longer be surprising.”
