EUR/USD is now targeting 1.0635 in the short term – UOB

Lee Sue Ann, an economist at UOB Group, and Quek Ser Leang, a market strategist, suggested that there is still room for the EUR/USD fall to the 1.0630 area in the short term.

24 hour outlook: We expected the EUR to trade in a range between 1.0700 and 1.0750 yesterday. However, it fell to a low of 1.0685 before ending the day at 1.0699 (-0.26%). Although the decline lacks momentum, the Euro’s weakness has yet to stabilize. Today, the Euro could weaken further, although the main support at 1.0635 is most likely out of reach. (there is another support at 1.0660). Resistance is at 1.0715; If the Euro breaks above 1.0735, it would suggest that Euro weakness has stabilized.

Next 1-3 weeks: Our update from two days ago (06 Sep, pair at 1.0725) still stands. As we have highlighted, the Euro is likely to weaken further, and the next level to watch is the May low at 1.0635. However, if the Euro breaks above the ‘strong resistance’ of 1.0765 (the level was yesterday at 1.0785), would mean that Euro weakness that began earlier this week has stabilized. Looking ahead, if the Euro breaks below 1.0635, attention will turn to the year low near 1.0515.

Source: Fx Street

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