Quek Ser Leang and Lee Sue Ann, strategists at United Overseas Bank (UOB), emphasize that EUR/USD failed to break clearly above 1.1825 and slipped into consolidation after a sharp decline from 1.1823 to 1.1766. They maintain a slightly positive 1-3 week bias and target potential gains towards 1.1850, but emphasize that a break below 1.1735 would signal that the euro has stopped rising.
Consolidation, but positive trend intact
“We have maintained a positive stance on the euro since the end of last week. In our most recent report from two days ago (April 15, spot at 1.1800) we highlighted that: “Upside momentum remains modest for now.” However, the EUR could continue to rise, but it remains to be seen whether 1.1850 is within reach.” Yesterday the EUR rose to a new high of 1.1823 and then fell back.”
“The current price movements are likely part of a consolidation phase. Today we expect the EUR to trade between 1.1760 and 1.1805.”
“The bullish momentum has weakened somewhat, but only a break of 1.1735 (no change to the ‘strong support level’ from yesterday) would suggest that the EUR stops rising.”
(This article was created using an artificial intelligence tool and reviewed by an editor.)
