EUR/USD: Risk for EUR is on the downside – UOB Group

FXStreet Insights Team FXStreet

Risk for Euro (EUR) is on the downside against US Dollar (USD), but it does not appear to have enough momentum to reach the major support at 1.1625. In the longer run, if EUR were to close below 1.1660, it could potentially trigger a move to 1.1625, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Below 1.1660, EUR can move to 1.1625

24-HOUR VIEW: "When EUR was at 1.1685 in the early Asian session last Friday, we indicated that 'the risk of EUR breaking the major support at 1.1660 is increasing, even though the next support at 1.1625 is probably out of reach for now.' We added, 'the downside risk will remain intact provided that 1.1720 is not breached.' Our expectations did not materialise, as after dipping to a low of 1.1663, EUR rebounded to a high of 1.1713 before closing little changed at 1.1689 (-0.09%). EUR edged modestly lower at the open today. Although there has been no significant increase in downward momentum, the risk for today remains on the downside. However, EUR does not appear to have enough momentum to reach the major support at 1.1625. Resistance is at 1.1700, followed by 1.1720."

1-3 WEEKS VIEW: "Last Tuesday (08 Jul, spot at 1.1745), we highlighted that 'while there has been no significant increase in downward momentum, the current pullback in EUR could extend to 1.1660.' After EUR dipped to a low of 1.1661 on Thursday, we highlighted on Friday (11 Jul, spot at 1.1685) that 'although there is still no significant increase in momentum, only a breach of 1.1755 (‘strong resistance’ level) would indicate that the current downward risk has faded.' We also highlighted that 'until then, if EUR were to close below 1.1660, it could potentially trigger a move to 1.1625.' We stand by our view."

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.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.