EUR/USD: Chance of dipping below last week’s low of 1.1540 – UOB Group

FXStreet Insights Team FXStreet

Euro (EUR) could dip below last week’s low of 1.1540; a sustained decline below this level is unlikely. In the longer run, the likelihood of EUR reaching the 1.1490 during this phase of weakness is decreasing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sustained decline below 1.1540 is unlikely

24-HOUR VIEW: "EUR fell to a low of 1.1555 last Friday and then rebounded strongly. Yesterday, Monday, we stated that 'while there is scope for the rebound to extend, there does not appear to be sufficient momentum to reach 1.1655.' Our view turned out to be incorrect, as rather than rebounding, EUR fell to a low of 1.1556. Downward momentum is increasing, but not significantly. Today, EUR could dip below last week’s low of 1.1540, but based on the current momentum, a sustained decline below this level is unlikely. We do not expect the major support at 1.1490 to come into view. Resistance is at 1.1580; a breach of 1.1600 would indicate that the current mild downward pressure has eased."

1-3 WEEKS VIEW: "Last Friday (10 Oct, spot at 1.1565), we stated that 'the outlook for EUR remains negative, and it could decline further toward 1.1490.' After EUR subsequently rebounded, we highlighted yesterday (13 Oct, spot at 1.1610) that 'downward momentum is slowing, and the likelihood of EUR reaching 1.1490 during this phase of weakness is decreasing.' We continue to hold the same view. Overall, only a breach of 1.1645 (‘strong resistance’ level previously at 1.1655) would indicate that the weakness in EUR from early last week has stabilised."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD consolidates gains, holds above 1.3600

GBP/USD stays in a consolidation phase above 1.3600 on Monday following the previous week's impressive rally. The US Dollar recovers ground due to uncertainty over the potential impact of US economic sanctions' against Iran on energy prices, leaving the risk-sensitive pair on the backfoot.

EUR/USD stays below 1.1700 as markets turn cautious

EUR/USD stays on the back foot and trades below 1.1700 after posting strong gains in the previous week. The pair struggles as the US Dollar attempts a tepid recovery following last week's sell-off that was triggered by the US Treasury's change to bond buyback plan. Meanwhile, investors cling to a cautious stance, awaiting this week's key events and details surrounding the US' economic sanctions package against Iran.

Gold extends rally to fresh three-month high above $4,650

Gold (XAU/USD) extends its advance on Monday, building on the strong rally seen last week following the US Treasury’s buyback announcement and trading at its highest level since May near $4,650.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

The week ahead: Jackson Hole and Nvidia results to take focus away from Trump

We start the week with the focus squarely on the US. Rising Treasury yields, the Jackson Hole Symposium, inflation and GDP data, along with tariff risks, will dominate market action in the coming days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.