EUR/USD now looks to 1.1210 – UOB

FX Strategists at UOB Group now sees EUR/USD heading towards the 1.1210 level in the next weeks.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways’ yesterday. However, EUR plunged to a low of 1.1234 during NY session. The rapid decline is oversold but strong downward momentum indicates that EUR could weaken further. In view of the oversold conditions, a sustained decline below 1.1210 is unlikely (next support at 1.1185 is unlikely to come under threat). Resistance is at 1.1260 followed by 1.1280.”

Next 1-3 weeks: “Yesterday (26 Jan, spot at 1.1305), we highlighted that the downward bias is intact and there is scope for EUR to ‘edge lower to 1.1240’. Our view for a lower EUR was not wrong but we did quite anticipate the sharp and rapid drop during NY session (low of 1.1234). Downward momentum has improved further and EUR is likely to continue to head lower. A clear break of 1.1210 would increase the odds for EUR to head lower towards the 2021 low near 1.1185. The EUR weakness is deemed intact as long as 1.1315 (‘strong resistance’ level was at 1.1365 yesterday) is not breached.”