EUR/USD risks further downside below 1.2080 – UOB
|FX Strategists at UOB Group forecast further decline in EUR/USD while below 1.2080.
Key Quotes
24-hour view: “We highlighted yesterday that ‘upward momentum has improved a tad and the bias is tilted to the upside’. We added, ‘any advance in EUR is expected to face stiff resistance at 1.2170’. However, the 1.2170 level was untested as EUR dropped sharply after touching 1.2157 (overnight low of 1.2075). The rapid decline appears to be running ahead of itself and while a dip below the overnight low of 1.2075 is not ruled, the next support at 1.2050 is unlikely to come under threat. Resistance is at 1.2135 followed by 1.2155.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (20 Jan, spot at 1.2130). As highlighted, EUR ‘has to move and stay below 1.2080 within these 1 to 2 days or the odds for a move lower to 1.2010 would diminish quickly’. On the upside, a break of 1.2170 (no change in ‘strong resistance’ level) would indicate that the weak phase that started earlier last week has run its course.”
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.