EUR/USD: More short-term losses likely – UOB

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Forex Strategists UOB Group, Lee Sue Ann and Quek Ser Leang, suggested that EUR/USD could continue to fall and test 1.0100 before hitting 1.0000 in the coming weeks.

24 hour outlook: “Yesterday we highlighted that the euro’s weakness had not stabilized and we thought there was room for it to weaken to 1.0200. The expected weakness exceeded our expectations as the single currency fell to as low as 1.0160. The bearish momentum has been curbed a bit and this, coupled with oversold conditions, suggests that the euro is unlikely to weaken much further. euro could fall to 1.0145 before stabilizing. For today, the euro is unlikely to challenge the next major support at 1.0100. To the upside, the breakout of 1.0260 (minor resistance is at 1.0220) would indicate that the current weakness of the euro has stabilized.”

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Next 1-3 weeks: “Yesterday (July 06, pair at 1.0265), we highlighted that the strong bearish momentum was likely to lead to further Euro weakness. We noted that the next levels to focus on were 1.0200 and 1.0100. Subsequently, the Euro lost 1 .0200 and fell to a low of 1.0160.The euro seems likely to weaken further, although oversold conditions could slow the pace of any further decline. just a break of 1.0310 (‘strong resistance’ level was yesterday at 1.0380) would indicate that the euro’s downside risk that started a week ago has run its course. Looking ahead, the next support below 1.0100 lies at the rather critical psychological level of 1.0000.”

Source: Fx Street

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