EUR/USD risks further losses below 1.0950 .

In opinion of FX Strategists at UOB Group, EUR/USD could accelerate losses on a breach of the 1.0950 level in the near term.

Key Quotes

24-hour view: “We highlighted last Friday that EUR ‘could edge higher but any advance is expected to face solid resistance at 1.1045’. EUR subsequently rose to 1.1037 before dropping to 1.0977. Downward momentum has improved and a break of 1.0950 would not be surprising. That said, it is left to be seen if EUR can maintain a foothold below this major support level (next support is at 1.0925). Resistance is at 1.1000 followed by 1.1010.”

Next 1-3 weeks: “We have expected EUR to consolidate since early last week. After trading sideways for a few days, shorter-term downward momentum is beginning to build. While downside risk has increased, EUR has to close below 1.0950 before a sustained decline is likely. On the upside, a break of 1.1130 (‘strong resistance’ level) would indicate that the build-up in downward momentum has fizzled out. Looking ahead, the next support below 1.0950 is at 1.0900.”

EUR/USD hits two-week lows below 1.0950 on US dollar’s strength.EUR/USD remains pressured towards 1.0900, at its lowest level in two weeks. The US dollar holds firmer amid risk-aversion while the US 10-year Treasury yields refresh three-year high on hawkish Fed’s outlook. Rising covid concerns in Germany and China add to the euro’s plight. 

EUR/USD News 

GBP/USD falls towards 1.3100 ahead of BOE’s Bailey.GBP/USD is dropping towards 1.3100 amid a notable US dollar demand across the board. Fed-BOE policy divergence favors the greenback amid firmer US Treasury yields. Renewed covid concerns and the Ukraine crisis will likely keep GBP bulls at bay. Bailey’s speech awaited. 

GBP/USD News 

Gold drops further below $1,950 amid firmer US dollar, yields.Gold price is extending its weakness below $1,950, having failed to find acceptance above the $1,960 barrier in the previous week. Markets remain risk-averse amid rising concerns over the covid resurgence in Asia, especially in China, underpinning the US dollar’s safe-haven appeal at gold’s expense. 

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s