United Abroad Financial institution’s (UOB) Quek Ser Leang and Lee Sue Ann spotlight that EUR/USD stays underneath strain after briefly dipping to 1.1416 earlier than rebounding. They see scope for short-term consolidation between 1.1435 and 1.1495 as oversold circumstances unwind, however preserve a bearish bias towards 1.1410, and warn {that a} break of the 1.1390/1.1410 assist zone might open the best way to 1.1210.
Oversold Euro pauses inside vary
“24-HOUR VIEW: When EUR was at 1.1460 within the early Asian session final Friday, we indicated that “circumstances are deeply oversold, however there may be scope for EUR to drop beneath the assist at 1.1445.” Nonetheless, we held the view that “the key assist at 1.1410 is unlikely to return underneath menace.” EUR subsequently dropped to a low of 1.1416, rebounding to shut at 1.1468 (+0.10%). Downward momentum is slowing, and circumstances are unwinding from oversold ranges. In different phrases, as a substitute of constant to say no, EUR is extra more likely to consolidate in the present day, in all probability between 1.1435 and 1.1495”
“1-3 WEEKS VIEW: Final Thursday (18 Jun, spot at 1.1505), we highlighted that whereas EUR “is predicted to stay underneath strain, however it could want a while to consolidate earlier than making a transfer to 1.1445.” After EUR dropped to 1.1450, we highlighted on Friday (19 Jun, spot at 1.1460) that “a breach of 1.1445 is not going to be stunning, and the following technical goal is 1.1410.” EUR subsequently declined to a low of 1.1416 earlier than rebounding. Whereas there may be nonetheless scope for EUR to say no to 1.1410, oversold short-term circumstances might result in 1-2 days of consolidation first. Total, solely a breach of 1.1530 (‘sturdy resistance’ stage was at 1.1540 final Friday) would point out that 1.1410 is out of attain.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
