He EUR/USD could fall back to the 1.0860 zone in the coming weeks, according to Quek Ser Leang, a market strategist at UOB Groupand Peter Chia, Senior Currency Strategist.
24 hour outlook: We did not anticipate the sharp fall of the Euro that took it to a low of 1.0916 (we expected it to trade sideways). Although the bounce from the low has tempered some of the bearish momentum, the EUR could fall as far as 1.0900 before stabilization is likely. The next major support at 1.0865 is probably out of reach today. Resistance is at 1.0970; if the Euro breaks above 1.0995, it would indicate that Euro weakness has stabilized.
Next 1-3 weeks: In the middle of last week we turned negative in EUR. After it bounced hard in early Asian trade yesterday (02 Aug, pair at 1.1010), we signaled that the chance of it falling to 1.0920 this time was slim, adding that only a break of 1.1070 would indicate bearish pressure. current had faded. We did anticipate that the EUR would fall hard and broke below 1.0920 (the low has been 1.0916 in NY trade). Momentum suggests Euro could weaken further to 1.0865. To the upside, the ‘strong resistance’ level has turned down to 1.1020 from 1.1070.
Source: Fx Street
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