There is a chance that the Euro (EUR) could fall to 1.0790 before the risk of a more sustained rebound increases. Support at 1.0760 is unlikely to be threatened, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
EUR could fall towards 1.0790 in the short term
24-HOUR VIEW: “When EUR was trading at 1.0820 yesterday, we highlighted that ‘as long as EUR stays below 1.0845 (minor resistance at 1.0835), it could drop below 1.0800.’ We added, ‘support at 1.0760 is unlikely to be threatened.’ Our view was not wrong as EUR held below 1.0845 (high 1.0835) and fell below 1.0800 (low 1.0795). EUR closed virtually unchanged at 1.0815 (-0.14%). Bearish momentum is waning, but there is still a chance that EUR could drop to 1.0790 before the risk of a more sustained bounce increases. Support at 1.0760 is unlikely to be threatened. Resistance levels are at 1.0830 and 1.0845.”
1-3 WEEK OUTLOOK: “We highlighted yesterday (July 30, pair at 1.0820) that we continue to hold a negative view on the EUR, with the next level to focus on being 1.0760. There is no change in our stance. Overall, only a break of 1.0870 (with no change in the ‘strong resistance’ level) would mean that the EUR weakness that started in the middle of last week is over.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
