EUR/USD could drop to 1.1160 near term – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, the recent price action in EUR/USD opens the door to further decline to 1.1160 in the next weeks.

Key Quotes

24-hour view: “Our expectations for EUR to ‘trade sideways’ was incorrect as it plummeted to 1.1184 before closing on a weak note at 1.1197 (-0.44%). Further weakness appears likely but oversold conditions suggest that the next major support at 1.1160 is likely out of reach for today (there is a minor support at 1.1180). Resistance is at 1.1220 followed by 1.1240.”

Next 1-3 weeks: “On Monday (22 Nov, spot at 1.1285), we highlighted that further EUR weakness is likely but ‘oversold conditions suggest that 1.1200 may not come into the picture so soon’. While our view for a weaker EUR was not wrong, we did not quite expect the ease by which EUR cracked 1.1200 yesterday (24 Nov) and dropped to 1.1184. While conditions remain oversold, the breach of 1.1200 has opened up the way for EUR to weaken to 1.1160. All in, EUR is expected to stay weak as long as it does not move above 1.1270 (‘strong resistance’ level was at 1.1325 yesterday). Looking ahead, the next support level of note below 1.1160 is at 1.1100.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD climbs to four-day highs near 1.3250

GBP/USD rapidly reverses Friday’s small losses and challenges the 1.3250 level, or four-day tops, at the beginning of the week. Cable’s upside comes on the back of further loss of momentum in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD extends the advance past 1.1400

EUR/USD starts the week on a positive note, trading above 1.1400 on Monday as broad-based US Dollar weakness lends support to the pair. In the meantime, investors continue to monitor developments surrounding efforts to end the US-Iran conflict, while attention gradually shifts to the ECB's annual forum and the US NFP data.

Gold falters just ahead of $4,100

Gold remains under modest bearish pressure just above the key $4,000 mark per troy ounce on Monday. The yellow metal struggles to extend its recent gains as renewed effervescence in the Middle East revives inflation concerns and bolsters Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.