UOB Group FX Strategists say downward pressure EUR / USD seems to have declined somewhat in favor of short-term consolidation.
24-hour view: “The sudden jump in the euro that pushed it to an overnight high at 1.0924 was a surprise. The rapid progression seems to be ahead of itself and a new sustained strength of the euro is not expected for today. That said, the EUR may slightly exceed the high of 1.0924, but any increase is considered to be in the range 1.0840 / 1.0955 (a steady rise above 1.0950 is not not expected). “
Next 1-3 weeks: “After a sharp fall in the euro on Thursday, we indicated on Friday (03 April, spot at 1.0840) that” there was room for the euro to weaken further , but it is premature to expect a revision from the March low of 1.0635. “. The euro then fell to 1.0766 on Monday before organizing a sudden and robust rebound yesterday (April 07). While our level of” strong resistance “at 1.0930 is still intact (daily high at the following day at 1.0924), the slight downward pressure dissipated. From there, the EUR probably entered a consolidation phase and should trade between 1.0750 and 1.1000 for a period . “