Lee Sue Ann, an economist at UOB Group, and Quek Ser Leang, a market strategist, suggest that a further drop could drag EUR/USD to the 1.0720 zone In the next weeks.
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24 hour view: Our expectations that EUR/USD would break below 1.0765 did not materialize. Instead, EUR/USD traded in a relatively tight range between 1.0770 and 1.0808 before closing at 1.0794 (+0.19%). Momentum indicators are mostly flat, suggesting that EUR/USD is likely to trade sideways today, probably between 1.0770 and 1.0820.
Next 1-3 weeks: We continue to hold the same view as yesterday (Sep 4, EUR/USD at 1.0775). As highlighted, there is a timid buildup of bearish momentum. This could send EUR/USD down to 1.0720. Looking ahead, EUR/USD needs to break and sustain below 1.0720 before a sustained decline can be expected. To the upside, if EUR/USD breaks above 1.0860, it would mean momentum has faded.
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.
