The Euro (EUR) is expected to decline; Due to the slight momentum, any decline is unlikely to break clearly below 1.0860. Longer term, there is a chance that the EUR breaks below the main support zone of 1.0860/1.0885; It remains to be seen whether it can maintain a position below these levels, say UOB Group FX analysts Quek Ser Leang and Peter Chia.
EUR may break below 1.0860/1.0885
24 HOURS VIEW: “Yesterday we highlighted that the EUR ‘could fall to 1.0885 before the risk of a more sustained rebound is likely.’ We added, ‘next support at 1.0860 is unlikely to come into play.’ Our view was not wrong, as the EUR fell to 1.0881, closing at 1.0890 (-0.17%). There has been a slight increase in momentum Today, we expect the EUR to go down, but due to the slight momentum, it is little. “Any decline is likely to break clearly below 1.0860. Resistance is at 1.0900; a break of 1.0915 would indicate that the current bearish pressure has eased.”
1-3 WEEK VIEW: “Yesterday we highlighted (Oct 15, spot at 1.0905) that ‘the slight increase in momentum suggests that there is a possibility of the EUR breaking below the 1.0860/1.0885 support zone, but It remains to be seen whether it can maintain a position below these levels.’ The EUR then fell to a low of 1.0886. We continue to maintain the same view. Looking ahead, the next support level below the support zone is at 1.0775. At this time, the probability of the EUR going down to this level. is low. To the upside, a break of 1.0950 (the ‘strong resistance level’ was at 1.0960 yesterday) would indicate that the EUR weakness that began earlier this month has stabilized.”
Source: Fx Street
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