Further bearish momentum could drag the EUR/USD to the 1.0630 zone in the coming weeks, according to economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group.
24 hour outlook: The strong fall of the Euro, which has taken it to a minimum of 1.0705, has been a surprise (we expected a sideways trade). What is not surprising is that the sharp and rapid decline is oversold. However, there are still no signs of stabilization. From now on, as long as the Euro remains below 1.0760 (minor resistance is at 1.0745), could drop below 1.0700 first before the risk of rebound increases. The next support at 1.0660 is unlikely to be threatened.
Next 1 to 3 weeks: Two days ago (04 Sep, pair at 1.0775), we signaled a timid increase in bearish momentum, and held the view that this could send the Euro down to 1.0720. Yesterday, the Euro fell to a low of 1.0705 before closing at 1.0720 (-0.69%). The sharp increase in momentum suggests that the Euro is likely to weaken further. The level to watch is the May low at 1.0635. Downside risk is intact as long as the Euro remains below 1.0800 (‘strong resistance’ level previously at 1.0860).
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.
