EUR/USD faces solid support around 1.1530 – UOB
|FX Strategists at UOB Group noted EUR/USD still risks further decline in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that EUR ‘could weaken further but any weakness is likely limited to a test of 1.1565’. EUR subsequently dipped to 1.1561 before rebounding slightly. While conditions remain oversold, the weakness does not appear to have stabilized just yet. That said, any decline from here is unlikely to challenge the major support at 1.1530 (minor support is at 1.1555). On the upside, a break of 1.1615 (minor resistance is at 1.1600) would indicate that the current weakness has stabilized.”
Next 1-3 weeks: “Yesterday (30 Sep, spot at 1.1600), we highlighted that EUR is likely to weaken further and the next support is at 1.1565 followed by a rather major level at 1.1530. EUR dropped to 1.1561 during NY session before closing slightly lower at 1.1581 (-0.12%). Downward momentum has slowed somewhat and while EUR could decline further, the major and strong support at 1.1530 may not be easy to break. Overall, the current downside risk is intact as long as the ‘strong resistance’ at 1.1655 (level was at 1.1680 yesterday) is not breached.”
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