EUR/USD risks a drop below 1.0470 – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang suggested EUR/USD could slip back below the so far 2022 low at 1.0470 in the next weeks.

Key Quotes

24-hour view: “EUR popped briefly to 1.0577 before easing to close slightly higher at 1.0520 (+0.15%). Despite the advance, momentum indicators are ‘flattish’ and the risk of a sustained rise in EUR is low. Overall, EUR is likely to trade sideways for today, expected to be within a range of 1.0490/1.0570.”

Next 1-3 weeks: “After dropping sharply to a low of 1.0470 last Thursday (28 Apr), EUR traded sideways the past few days. The price actions are viewed as part of a short-term consolidation. In other words, EUR could extend its decline below 1.0470. In view of the oversold conditions, EUR may not be able to maintain a foothold below this level. On the upside, a breach of 1.0610 (‘strong resistance’ level) would suggest that 1.0470 could be a short-term bottom.”