EUR/USD now shifted its focus to 1.0810 – UOB

In opinion of FX Strategists at UOB Group, EUR/USD could attempt a move to the 1.0810 area in the next weeks.

Key Quotes

24-hour view: “We highlighted the ‘rapid and strong pick up in momentum’ yesterday and expected ‘further EUR weakness to 1.0840’. The subsequent decline exceeded our expectation as EUR dropped to an overnight low of 1.0832 before ending the day on a soft note at 1.0840 (-0.29%). The weakness in EUR over the past several days is deep in oversold territory now but is still not showing sign of stabilizing. From here, EUR could weaken further but oversold conditions could ‘limit’ any decline to a probe of the major 1.0810 support. For today, the prospect for a sustained drop below 1.0810 is not high (next major support is at 1.0770). Resistance is 1.0865 but only a move above 1.0890 would indicate the current weakness has stabilized.”

Next 1-3 weeks: “As highlighted, EUR ‘is still weak’ and the ‘focus is at 1.0810’. EUR subsequently registered a ‘lower low’ for nine straight days as it touched 1.0832 before ending the day at 1.0840 (-0.28%). From here, a breach of 1.0810 would not be surprising but in view of the severely oversold conditions, the next support at 1.0770 could be out of reach. All in, EUR is expected to stay on the back foot unless it can move back above 1.0905 (‘strong resistance’ level was at 1.0950 yesterday).”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD holds higher ground above 0.7300

AUD/USD extends gains above 0.7300 amid fresh US dollar selling across the board, as the market sentiment remains mixed starting out a fresh week.  PBOC's status-quo, upbeat Australian PM Morrison's comments and the rally in copper prices bode well for the aussie. 


USD/JPY extends losses below 104.50 amid risk-aversion

USD/JPY resumes its decline towards 104.00 amid risk-off action in the Asian equities and broad dollar weakness. Markets in Tokyo are off for Respect-for-the-Aged Day, Focus shifts to the Fed Chair Powell's speech. 


Gold due for a breakout, according to key indicator

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. The yellow metal has carved out a descending triangle pattern over the past four weeks.

Gold News

The week ahead: Central bankers’ chance to explain themselves

Global equities took another hit at the end of last week, and as we start a fresh week there is some concern that volatility could be creeping back into the markets and that tech has lost some of its lustre, along with gold, which also ended the week lower. 

Read more

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News