FX Strategists at UOB Group forecast additional decline in EUR/USD whereas beneath 1.2080.
Key Quotes
24-hour view: “We highlighted yesterday that ‘upward momentum has improved a tad and the bias is tilted to the upside’. We added, ‘any advance in EUR is predicted to face stiff resistance at 1.2170’. Nevertheless, the 1.2170 stage was untested as EUR dropped sharply after touching 1.2157 (in a single day low of 1.2075). The fast decline seems to be working forward of itself and whereas a dip beneath the in a single day low of 1.2075 will not be dominated, the subsequent assist at 1.2050 is unlikely to come back beneath menace. Resistance is at 1.2135 adopted by 1.2155.”
Subsequent 1-3 weeks: “There’s not a lot so as to add to our replace from yesterday (20 Jan, spot at 1.2130). As highlighted, EUR ‘has to maneuver and keep beneath 1.2080 inside these 1 to 2 days or the chances for a transfer decrease to 1.2010 would diminish rapidly’. On the upside, a break of 1.2170 (no change in ‘robust resistance’ stage) would point out that the weak part that began earlier final week has run its course.”
