EUR/USD could extend the correction lower towards the 1.1680 region in the near term, noted FX Strategists at UOB Group.
24-hour view: “EUR dropped to a low of 1.1702 before rebounding strongly to hit an overnight high of 1.1784. The strong recovery appears to have scope to extend further but 1.1800 is a strong resistance and at this stage, a sustained move above this level seems unlikely (next resistance is at 1.1830). Support is at 1.1735 followed by the low near 1.1700”.
Next 1-3 weeks: “EUR rebounded strongly after touching a low of 1.1702 yesterday. Downward pressure has eased somewhat with the strong daily closing but it is too early to expect stabilization. As indicated yesterday, only a move back above 1.1830 would indicate that the current mild downward pressure has eased. In the meanwhile, another push lower to test the 1.1680 support is not ruled out but at this stage, a sustained move below this level seems unlikely (there is another strong support at 1.1640)”.
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