EUR/USD: A move to 1.1600 looks unlikely – UOB
|In light of FX Strategists at UOB Group, EUR/USD is unlikely to drop to the 1.1600 region in the next weeks.
Key Quotes
24-hour view: “Yesterday, EUR dipped to a low of 1.1625 before rebounding to close slightly higher at 1.1672 (+0.11%). The price actions were in line with our expectations wherein EUR has room to ‘dip below the major support at 1.1630 but the next support at 1.1600 is unlikely to come into the picture’. The rebound from the low appears to have scope to extend higher but any advance is viewed as part of a 1.1640/1.1710 range. In other words, a sustained rise above 1.1710 is not expected.”
Next 1-3 weeks: “There is not much to add to our update from 2 days ago (Sep 23, spot at 1.1710). As highlighted, the risk for EUR is still on the downside and ‘the next support is at 1.1630 followed by 1.1600’. EUR dropped to a low of 1.1625 yesterday (24 Sep) and shorter-term downward momentum appears to have slowed somewhat. In other words, while the outlook for EUR still remains weak, the next support at 1.1600 may not come into the picture so soon. On the upside, the ‘strong resistance’ level remains unchanged at 1.1760 for now.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.