According to forex strategists from UOB Group, Lee Sue Ann and Quek Ser Leang, the EUR/USD it is still at risk of a deeper setback in the short term.
24 hour outlook: “After the euro tumbled below 0.9600 and rose again, we highlighted yesterday that although euro weakness had not stabilized, 0.9500 was unlikely to be threatened for now. The euro subsequently rose as high as 0.9709 earlier falling again to close at 0.9606 (0.87%) The bearish pressure has eased slightly and this, combined with oversold conditions, suggests that the euro likely to consolidate todaywaiting for it to settle between 0.9560 and 0.9700“.
Next 1-3 weeks: “No change in our view since yesterday (Sep 26, pair at 0.9630). As we have highlighted, last Friday’s impulsive and outsized drop suggests that the Euro could weaken further, possibly to 0.9500. Overall, the euro weakness of about 2 weeks is intact as long as euro does not break above 0.9770 (‘strong resistance’ level was yesterday at 0.9810).”
Source: Fx Street
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