EUR/USD risks a potential decline to 1.1650 – UOB
|According to FX Strategists at UOB Group, EUR/USD could recede further and re-test the mid-1.1600s in the near-term.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is chance for EUR to edge lower but any weakness is likely limited to a test of 1.1705’. We added, ‘the next support is at 1.1680’. The weakness in EUR exceeded our expectation as EUR dropped to 1.1686 before rebounding. While the decline is oversold, it is too early to expect a sustained recovery. From here, EUR is likely to test the major support at 1.1680 first before a rebound can be expected. For today, a break of the next support at 1.1650 is unlikely. Resistance is at 1.1735, the stronger level is at 1.1765.”
Next 1-3 weeks: “Two days ago (14 Oct, spot at 1.1740), we held the view that EUR ‘is still in a consolidation phase but could test the bottom of the expected 1.1680/1.1800 range’. EUR did not quite test 1.1680 as it rebounded after touching a low of 1.1686 yesterday (15 Oct). Downward momentum is beginning to improve and the bias has shifted to the downside towards the next support at 1.1650. Only a break of 1.1790 would indicate the current mild downward pressure has eased. On a shorter-term note, 1.1765 is already a strong resistance level.”
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.