EUR/USD: Further weakness likely below 1.1070 – UOB
|EUR/USD risks extra losses while below the 1.1070 level, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-hour view: We did not anticipate the surge in volatility in EUR yesterday. After rising to a high of 1.1143, EUR sold off sharply and plunged to 1.0964. Unsurprisingly, the sharp and swift drop is oversold. However, the weakness has not stabilised just yet. Today, EUR could drop below the major support near 1.0965, but it might not be able to maintain a foothold below this level. The next support at 1.0920 is unlikely to come into view. Resistance is at 1.1010, followed by 1.1035.
Next 1-3 weeks: Our latest narrative was from two days ago (26 Jul, spot at 1.1050), wherein, while EUR “could dip below 1.1010, the probability of it dropping to the next major support at 1.0965 is not high for now.” Yesterday, EUR rose above our ‘strong resistance’ level of 1.1135 (high was 1.1143) before plunging to a low of 1.0965 (unfortunately, we were unable to anticipate the spike in volatility). From here, EUR must break and stay below 1.0965 before further EUR weakness is likely. The risk of EUR breaking clearly below 1.0965 will remain intact as long as it stays below 1.1070 in the next couple of days. Looking ahead, the next levels to watch below 1.0965 are at 1.0920 and 1.0865.
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.