FX Strategists at UOB Group recommended the following stage of word in EUR/USD is now at 1.2250.
Key Quotes
24-hour view: “Yesterday, we held the view that ‘the speedy decline is oversold however there may be room for EUR to check 1.2125 first earlier than stabilization may be anticipated’. Nonetheless, EUR didn’t fairly check 1.2125 because it rebounded strongly from 1.2135 to an in a single day excessive of 1.2209. The speedy rise seems to be working forward of itself however additional advance will not be dominated out. That stated, a transparent break of the ‘robust resistance’ at 1.2250 is unlikely (subsequent resistance is at 1.2280). Assist is at 1.2180 adopted by 1.2155.”
Subsequent 1-3 weeks: “We highlighted yesterday (12 Jan, spot at 1.2185) that ‘probability for EUR to maneuver to 1.2080 has elevated’. We added, ‘the present downward stress is deemed as intact so long as it doesn’t transfer above the ‘robust resistance’ stage at 1.2250. Whereas the ‘robust resistance’ stage continues to be intact, the comparatively robust bounce of +0.48% (1.2207) has dented the downward momentum. A break of 1.2250 wouldn’t be shocking and would point out that EUR will not be prepared to maneuver to 1.2080. As a way to rejuvenate the flagging downward momentum, EUR has to maneuver and keep under 1.2155 inside these 1 to 2 days or 1.2080 is unlikely to come back into the image.”
