EUR/USD: The next support is at 1.0515 – UOB

Deeper decline could drag EUR/USD towards 1.0515 area in the coming weeks, say Lee Sue Ann, Economist at UOB Group, and Quek Ser Leang, Market Strategist.

Featured comments

24 hour view: The sharp decline that took EUR/USD to 6-month lows at 1.0629 was a surprise (we expected EUR/USD to trade in a range). Although the decline appears to have been exaggerated, EUR/USD weakness has not stabilized. Today, EUR/USD could continue to decline, but it is unlikely to break clearly below 1.0600. Resistance lies at 1.0665, while a break of 1.0690 would mean EUR/USD will not weaken further.

Next 1-3 weeks: On Tuesday (September 12, EUR/USD at 1.0750), we indicated that “EUR/USD weakness has stabilized”, and we were of the opinion that “EUR/USD is likely to trade in a range between 1.0690 and 1.0820”), We highlighted that “looking ahead, if EUR/USD breaks and sustains below 1.0690, the risk of a drop towards the main support at 1.0635 will increase.” During the London session, EUR/USD not only broke below 1.0690, but also fell slightly below the May low of 1.0635 (low was 1.0629). The sharp increase in momentum suggests that EUR/USD has resumed its weakness. However, it remains to be seen if there is enough momentum to take EUR/USD further below the March low near 1.0515. To maintain momentum, EUR/USD must stay below 1.0730, the current “strong resistance” level. This level will move lower in the coming days.

Source: Fx Street

You may also like

The president of the USA
Markets
Joshua

The president of the USA

US President Donald Trump said on Saturday that he had signed letters to 12 countries detailing the various levels of