EUR/USD: Falling towards 1.0800 short term – UOB Group

FXStreet Insights Team FXStreet

The Euro (EUR) could test the 1.0800 level before a recovery can be expected; major support at 1.0770 is not expected to come into view. In the longer run, to reach the significant support at 1.0770, EUR must keep moving lower, or the likelihood of it reaching this level will diminish quickly, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notes.

Below 1.0800 EUR must reach 1.0770

24-HOUR VIEW: “We expected EUR to ‘decline gradually, potentially reaching 1.0825’ yesterday. Instead of declining gradually, EUR fell sharply in London trading, reaching a low of 1.0810. Conditions are severely oversold after the rapid drop, but today, EUR could test the 1.0800 level before a recovery can be expected. The major support at 1.0770 is not expected to come into view. Resistance levels are at 1.0845 and 1.0870.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (17 Oct, spot t 1.0860). As highlighted, the weakness in EUR that started early this month remains intact. However, to reach the significant support at 1.0770, EUR must keep moving lower, or the likelihood of it reaching this level will diminish quickly. The subsequent drop to 1.0810 increases the odds of a decline to 1.0770. On the upside, a breach of 1.0900 (‘strong resistance’ level was at 1.0935 yesterday) would mean that the weakness 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 declines as market caution lifts US Dollar

GBP/USD extends its gains for the second successive day, trading around 1.3200 during the Asian hours on Wednesday. The currency pair depreciated as the US Dollar gained momentum, driven by a combination of robust domestic economic data and a complex, mixed geopolitical landscape.

EUR/USD hits yearly low, eyes 1.1350 on USD strength

EUR/USD sits at yearly lows, eyeing 1.1350 in the European morning on Wednesday. The pair remains vulnerable to further declines amid a bullish US Dollar. The Greenback continues to draw support from hawkish Fed bets and US-Iran peace deal uncertainty.

$4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US Dollar

Gold drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday. Despite easing inflationary concerns in the face of the recent fall in Crude Oil prices, traders have been pricing in a greater chance of a rate hike by the US Federal Reserve.

Dogecoin tests a key make-or-break point amid waning retail support

Dogecoin trades below $0.08000 maintaining a steady decline for the seventh straight week. The meme coin is losing its retail strength as DOGE futures Open Interest drops 10% in 24 hours, while institutional demand remains muted with zero inflows so far this week.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.