EUR/USD: Bears are set to break below 1.0790 – UOB Group

There is a chance for the Euro (EUR) to dip to 1.0790 before the risk of a more sustained rebound increases. The major support at 1.0760 is unlikely to come under threat, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR may dip towards 1.0790 in short term

24-HOUR VIEW: “When EUR was trading at 1.0820 yesterday, we highlighted yesterday that ‘provided that EUR remains below 1.0845 (minor resistance is at 1.0835), it could drop below 1.0800.’ We added, ‘the major support at 1.0760 is unlikely to come under threat.’ Our view was not wrong, as EUR remained below 1.0845 (high of 1.0835) and dropped below 1.0800 (low of 1.0795). EUR closed largely unchanged at 1.0815 (-0.14%). Downward momentum is slowing, but there is still a chance for EUR to dip to 1.0790 before the risk of a more sustained rebound increases. The major support at 1.0760 is still unlikely to come under threat. Resistance levels are at 1.0830 and 1.0845.”

1-3 WEEKS VIEW: “We highlighted yesterday (30 Jul, spot at 1.0820) that we continue to hold a negative EUR view, and the next level to focus on is 1.0760. There is no change in our stand. Overall, only a breach of 1.0870 (no change in ‘strong resistance’ level) would mean that the EUR weakness that started in the middle of last week has ended.”