EUR/USD: Downside risk for EUR has increased – UOB Group
|Euro (EUR) could dip below 1.1645; given the oversold conditions, any further decline may not reach 1.1610. In the longer run, downside risk for EUR has increased; if it breaks clearly below 1.1645, it would then likely threaten the significant support at 1.1610, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Below 1.1645, EUR can threaten the significant support at 1.1610
24-HOUR VIEW: "Our view for EUR to 'trade in a range of 1.1690/1.1730' was incorrect. Instead of trading in a range, EUR dropped and tested the major support at 1.1645 (low was 1.1647). EUR closed on a soft note at 1.1655, down by 0.46%. The decline is oversold, but with no sign of stabilisation just yet, EUR could dip below 1.1645 today. Given the oversold conditions, any further decline may not reach the next major support at 1.1610. To maintain the oversold momentum, EUR must hold below 1.1690, with minor resistance at 1.1675."
1-3 WEEKS VIEW: "Yesterday (07 Oct, spot at 1.1710), we indicated that 'there is scope for EUR to test the late-Sep low of 1.1645.' However, we pointed out that 'it is unclear whether EUR can break clearly below this level.' We did not quite expect EUR to test 1.1645 so soon, as it dropped to a low of 1.1647. The downside risk for EUR has increased. If EUR breaks and holds below 1.1645, it would then likely threaten the significant support at 1.1610. Overall, only a breach of 1.1720 (‘strong resistance’ level was at 1.1755 yesterday) would indicate that the downside risk in EUR has eased."
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.