|

EUR/USD: Unlikely to threaten the major support at 1.1680 – UOB Group

Euro (EUR) could edge lower, but any decline is unlikely to threaten the major support at 1.1680. In the longer run, the bias for EUR is tilted to the downside toward 1.1680, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Bias for EUR is tilted to the downside

24-HOUR VIEW: "Last Friday, EUR fluctuated between 1.1713 and 1.1764 before settling on a soft note at 1.1719, down by 0.22%. The tentative increase in downward momentum could lead to EUR edging lower today. However, based on the current momentum, any decline is unlikely to threaten the major support at 1.1680 today. On the upside, resistance levels are at 1.1735 and 1.1750."

1-3 WEEKS VIEW: "EUR rose to a high of 1.1807 late last month and then pulled back. The pullback has gathered momentum, but not sufficient to indicate a sustained decline. That said, the bias from here is tilted to the downside toward 1.1680. Looking ahead, if EUR breaks and holds below this level, it could trigger a more sizeable pullback towards 1.1650. The current mild downward pressure would remain in place as long as the ‘strong resistance’ level, now at 1.1775 is not breached."

Author

FXStreet Insights Team

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.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD drops to two-week low, further below 0.7000 after RBA's less hawkish rate hike

AUD/USD drifts lower for the second straight day on Tuesday, hitting a fresh two-week low during the Asian session after the Reserve Bank of Australia's (RBA) widely expected 25 bps rate hike. The decision was far from unanimous, with three members preferring to hold rates at 4.60%. This tempers expectations of further tightening, which, along with modest US Dollar strength, weighs on the currency pair.





USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.


Gold struggles near $3,900 as traders assess Middle East developments,US election risks

Gold (XAU/USD) loses momentum on Tuesday as Oil prices rebound after the Wall Street Journal (WSJ) reported a US strike on Iran’s Qeshm Island. At the time of writing, XAU/USD trades around $3,909, down 0.93% on the day.

Crypto Today: Bitcoin, Ethereum, XRP under pressure as investors pull capital

Bitcoin trades downward at $76,566 on Tuesday, testing six-week lows. Ethereum, like Bitcoin, trades under pressure as it consolidates within a narrow support range. Meanwhile, Ripple hovers marginally above $1.25.

US Dollar Index edges up within range with midterm elections front and centre

The US Dollar Index is picking up from session lows but remains within previous ranges, below 102.00. The Greenback is drawing support from hostilities in Iran and higher Oil prices, but US political uncertainty is capping gains.

The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.