EUR/USD: Further losses remain on the cards below 1.0625 – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest EUR/USD risks extra decline while below the 1.0625 level for the time being.

Key Quotes

24-hour view: “Yesterday, we held the view that EUR could dip to 1.0520 before stabilizing. EUR subsequently dipped to 1.0531 before staging surprisingly robust rebound (high has been 1. a 0619). The rebound could extend but a sustained rise above 1.0625 is unlikely (next resistance is at 1.0670). Support is at 1.0580, followed by 1.0550.”

Next 1-3 weeks: “We have held a negative EUR view for more than a week. Yesterday (27 Feb 2023, spot at 1.0555), we highlighted that EUR is likely to continue to weaken to 1.0485 as long as it stays below 1.0625. We did not anticipate the to a high of 1.0619 in NY trade. Downward mo strong rebound mentum is waning rapidly. A breach of 1.0625 would suggest that the EUR weakness has ended and it has moved into a consolidation phase.”