The currency strategists of UOB Group they noted that the EUR / USD is at risk of further losses below 1.1685 in the coming weeks.
24 hour perspective: “We expected the EUR to weaken further yesterday, but we held the view that 1.1735 was unlikely to enter the picture. The subsequent weakness of the euro exceeded our expectations as it fell to a low of 1.1716. While the momentum to the decline has eased a bit, it seems too early to expect a sustained recovery. From here, there is room for the currency to first test support at 1.1710 before a stronger rebound can be expected. For today, the next support at 1.1685 is unlikely to be threatened. The resistance is at 1.1780but only a breakout of 1.1805 would indicate that the current bearish pressure has eased. ”
Next 1-3 weeks: “Yesterday, we indicated that short-term risk was sloping lower, but any weakness was considered part of a 1.1710 / 1.1860 range. We added that the EUR was unlikely to move below 1.1710 on a sustained basis. No Exactly how fast the euro is nearing the bottom of the expected range (low of 1.1716) was expected. The improvement in bearish momentum suggests that the rRisk remains to the downside, but the EUR has to close below 1.1685 before a more sustained decline can be expected (The next support is at 1.1610). At this stage, the outlook for such a move appears to be quite high as long as the euro does not move above 1.1835 in these one or two days (strong resistance level). ”
.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
