EUR / USD faces strong support around 1.1580 – UOB

EUR / USD is facing a further decline, but is unlikely to test the key support around 1.1580, in the view of currency strategists of UOB Group.

24 hour perspective: “The EUR fell to a low of 1.1638 last Friday before closing on a soft note at 1.1647 (-0.23%). The decline is oversold, but still shows no signs of stabilizing. From here, the euro could fall below main support at 1.1610, but for today the next support at 1.1580 is likely to be out of reach. On the upside, a move above 1.1695 (minor resistance at 1.1670) would indicate that the current weakness has stabilized. ”

Next 1-3 weeks: “In our latest update last Thursday (October 29, pair at 1.1745), we indicated that ‘an improvement in bearish momentum suggested that risk remained to the downside, but the EUR had to close below 1.1685 before a more sustained decline could be expected. We added that the next support was at 1.1610. Subsequently, the EUR closed below 1.1685 and fell to a low of 1.1638. From here on, a breakout of 1.1610 wouldn’t be surprising, but the next level at 1.1580 is a solid support and may not be easy to break. All in all, the current negative phase is considered intact as long as the EUR does not move above 1.1745 (‘strong resistance’ level, previously 1.1835). ”

.

Credits: Forex Street

You may also like