Provided that Euro (EUR) remains below 1.0845, it could drop below 1.0800. The support at 1.0760 is unlikely to come under threat, UOB Group FX strategists Quek Ser Leang and Peter Chia note.
EUR is closing in on 1.0845
24-HOUR VIEW: “Our view of EUR trading sideways was incorrect, as it fell to a low of 1.0801. EUR closed at 1.0819 (-0.35%). Downward momentum has increased, albeit not much. Today, provided that EUR remains below 1.0845 (minor resistance is at 1.0835), it could drop below 1.0800. The major support at 1.0760 is unlikely to come under threat.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Wednesday (24 Jul, spot at 1.0850), wherein EUR ‘is likely to trade with a downward bias, but the 1.0815 level is expected to provide solid support.’ We added, ‘if EUR breaks clearly below 1.0815, the next level to watch is 1.0760.’ After trading sideways for a few days, EUR fell sharply yesterday, breaking below 1.0815 (low of 1.0801). The focus is now at 1.0760. We will continue to hold a negative EUR view as long as 1.0870 (‘strong resistance’ level previously at 1.0890) is not breached.”
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