EUR/USD: Shrinking odds for extra losses – UOB

FX Strategists at UOB Group noted further downside in EUR/USD appears to be losing momentum.

Key Quotes

24-hour view: “Our view yesterday was that the ‘recovery in EUR has scope to extend to 1.0880 but prospect for a sustained rise above this level is not high’. EUR subsequently rose to 1.0887 before dropping back to end the day at 1.0787. Momentum indicators are beginning to turn flat and for today, EUR is likely to trade between 1.0700 and 1.0900.”

Next 1-3 weeks: “EUR eked out a fresh low of 1.0635 yesterday (23 Mar) before rebounding to close higher for the day. Downward momentum is beginning to wane and the sharp fall that started about 2 weeks ago is showing tentative signs of tiring. However, only a break of 1.0940 (‘strong resistance’ previously at 1.1000) would indicate that the weakness has stabilized. Until then, further fresh low is not ruled out but the prospect is beginning to dim.”