EUR/USD dangers additional declines whereas under the 1.0820 stage in the interim, notice UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leng.
24-hour view: “After EUR fell to a low of 1.0746 on Wednesday, we indicated yesterday that ‘the worth actions have resulted in a rise in downward momentum although EUR is unlikely to threaten the subsequent main help at 1.0700 at this time’. In keeping with our expectations, EUR continued to weaken yesterday however didn’t break the most important help at 1.0700 (low has been 1.0706). Whereas severely oversold, EUR may dip under 1.0700 at this time however it’s unlikely to threaten the subsequent help at 1.0650. On the upside, a breach of 1.0760 (minor resistance is at 1.0740) would point out that EUR isn’t prepared to go under 1.0700.”
Subsequent 1-3 weeks: “We have now anticipated EUR to weaken since greater than 2 weeks in the past. As EUR slumped, in our newest narrative from yesterday (25 Could, spot at 1.0750), we said, ‘So long as 1.0820 isn’t breached, there’s room for EUR to weaken additional to 1.0700’. In London commerce, EUR dropped to a low of 1.0706. Whereas we don’t rule out a break of 1.0700, the selloff over the previous 2 weeks seems to be overextended, each when it comes to time and value. To place it one other method, whereas we see room for EUR to weaken additional, it stays to be seen if it has sufficient momentum to interrupt clearly under the subsequent help at 1.0650. All in all, the weak part in EUR is undamaged so long as it stays under 1.0790 (‘sturdy resistance’ stage was at 1.0820 yesterday).”
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