In the opinion of Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, further losses could drag EUR/USD back to the mid-1.0700s in the near term.
Key Quotes
24-hour view: “We expect the euro to break 1.0930 last Friday. Our view was wrong as EUR quickly fell from 1.0925 to 1.0835. EUR continues to decline in early Asian trade and downside momentum is building fast. EUR may fall further although key support at 1.0755 is unlikely to come under threat today. Resistance at 1.0835, then 1.0860.
Next 1-3 weeks: “Last Friday (March 31, spot at 1.0905), we thought the EUR would ‘likely strengthen to 1.0970’. EUR rose to 1.0925 and then fell sharply. EUR continued to decline in early Asian trade and took our ‘strong support’ level of 1.0820. The upward momentum has dissipated. The current price action is likely part of a corrective pullback. Pullback may extend to 1.0755; A move to 1.0715 is unlikely for now. On the upside, the ‘strong resistance’ level at 1.0890 is likely to hold for at least the next few days.”
