EUR/USD: Chance of dropping below 1.1540 – UOB Group

FXStreet Insights Team FXStreet

Oversold weakness has not stabilised; Euro (EUR) could drop below 1.1540. The next support at 1.1490 is unlikely to come into view. In the longer run, the outlook for EUR remains negative; it could decline further toward 1.1490, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Outlook for EUR remains negative

24-HOUR VIEW: "Two days ago, EUR dropped to a low of 1.1597 and then rebounded. In the early Asian session yesterday, we stated that 'the rebound from oversold conditions suggests that instead of continuing to decline, EUR is more likely to trade in a range today, expected to be between 1.1600 and 1.1660.' However, instead of trading in a range, EUR fell sharply, reaching a low of 1.1541. Conditions remain oversold, but with no signs of stabilisation just yet, EUR could drop below 1.1540. The next support at 1.1490 is unlikely to come into view today. On the upside, any recovery is likely to stay below 1.1615, with minor resistance at 1.1595."

1-3 WEEKS VIEW: "Yesterday (09 Oct, spot at 1.1630), we reiterated our negative EUR view. We highlighted that 'the risk for EUR remains on the downside, likely toward the major support at 1.1570.' We also highlighted that 'oversold conditions could lead to a couple of days of consolidation first.' We underestimated the strength of the downward momentum, as EUR plummeted to a low of 1.1541 and closed lower for the fourth straight day (1.1563, -0.54%). The outlook for EUR remains negative, and it could decline further toward 1.1490. Overall, only a breach of 1.1655 (‘strong resistance’ level was at 1.1695 yesterday) would indicate that the weakness that started earlier this 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 clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.