EUR/USD: Further decline on the cards – UOB
|According to FX Strategists at UOB Group, EUR/USD risks extra pullbacks in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘the risk for EUR is still on the downside even though the major support at 1.1200 is still unlikely to come into the picture’. We added, ‘there is a minor support at 1.1220.’ EUR subsequently dipped to 1.1224 before recovering to trade sideways. Downward pressure is beginning to ease and EUR has likely moved into a consolidation phase. In other words, EUR is likely to trade sideways for today, expected to be within a 1.1225/1.1275 range.”
Next 1-3 weeks: “Our view from two days ago (22 Nov, spot at 1.1285) still stands. As highlighted, further EUR weakness is likely but oversold conditions suggest that 1.1200 may not come into the picture so soon. All in, EUR is expected to stay under pressure as long as it does not move above 1.1325 (no change in ‘strong resistance’ level). Looking ahead, a break of 1.1200 would shift the focus to 1.1160.”
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.