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EUR / USD with risks of a potential decline towards 1.1650 – UOB

According to the currency strategists of UOB Group, el EUR/USD I could go back further and retest the area 1.1650 in the short term.

24 hour perspective: “We highlighted yesterday that there was a possibility of the EUR going down, but any weakness was likely to be limited to a test of 1.1705. We added that the next support was at 1.1680. The weakness of the euro exceeded our expectations, as it fell to 1.1686 before rebounding. While the decline is oversold, it is too early to expect a sustained recovery. From here on, the EUR is likely to first test the main support at 1.1680 before a rebound can be expected. For today, the next support at 1.1650 is unlikely to break. Resistance is at 1.1735, the strongest level is at 1.1765 ”.

Next 1-3 weeks: “Two days ago (Oct 14, pair at 1.1740), we held the view that the EUR was still in a consolidation phase, but could test the bottom of the expected range of 1.1680 / 1.1800. The single currency failed to test 1.1680 as it rallied after hitting a low of 1.1686 yesterday (Oct 15). The bearish momentum is beginning to improve and the bias has shifted lower towards the next support at 1.1650. Only a breakout of 1.1790 would indicate that the current slight downward pressure has eased. On a short term note, 1.1765 is already a strong resistance level“.

Credits: Forex Street

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