EUR/USD: Weak phase remains intact – UOB
|FX Strategists at UOB Group noted the downward momentum in EUR/USD is expected to remain unchanged so far.
Key Quotes
24-hour view: “EUR traded sideways between 1.1713 and 1.1749 yesterday before closing little changed at 1.1723 (-0.02%). Despite the quiet consolidation, the underlying tone appears to have weakened somewhat. From here, EUR could drift lower but a sustained decline below 1.1700 is unlikely. Resistance is at 1.1740 followed by 1.1755.”
Next 1-3 weeks: “We have expected a weaker EUR for about 2 weeks now. In our latest update from last Friday (17 Sep, spot at 1.1765), we highlighted that ‘strong downward momentum suggests further EUR weakness is likely’ and that ‘the level to focus on is at 1.1725’. EUR plummeted to 1.1698 on Monday (20 Sep) but has since, not been able to make much headway on the downside. Shorter-term downward momentum has waned a tad and while further EUR weakness is not ruled out, the odds for a decline to the August’s low near 1.1665 are not high. However, the weak phase in EUR is deemed intact as long as it does not move above the ‘strong resistance’ level at 1.1775.”
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.