- Analytics
- News and Tools
- Market News
- EUR/USD: Sustained decline seen below 1.0470 – UOB
EUR/USD: Sustained decline seen below 1.0470 – UOB
Peter Chia and Quek Ser Leang, FX Strategists at UOB Group, suggested that EUR/USD could accelerate losses on a breakdown of 1.0470.
Key Quotes
24-hour view: “The sharp and swift sell-off in EUR came as a surprise as it plummeted to 1.0491 before rebounding. The rapid decline appears to be running ahead of itself but there is room for the weakness in EUR to extend even though a break of last week’s low at 1.0470 appears unlikely. On the upside, a break of 1.0600 (minor resistance is at 1.0570) would indicate that the current weakness has stabilized.”
Next 1-3 weeks: “Yesterday (05 May, spot at 1.0615), we highlighted that ‘while it is premature to expect a major reversal, the current short-term EUR strength could extend to 1.0695’. EUR subsequently rose to 1.0641 before staging a surprisingly sharp drop to 1.0491. The breach of our ‘strong support’ at 1.0520 indicates that upside pressure has dissipated. On the downside, 1.0470 is a solid support and EUR has to close below this level before a sustained decline is likely. At this stage, it is not clear whether EUR has enough momentum to close below 1.0470. Looking ahead, if EUR closes below 1.0470, the next support level to monitor is at 1.0420.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
