Oversold decline has not stabilized; support levels are at 1.0175 and 1.0100. In the longer run, risk is for further Euro (EUR) weakness; it remains to be seen if it can break and remain below 1.0100, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Oversold decline has not stabilized
24-HOUR VIEW: “ EUR gapped lower when it opened today. While it is already oversold, the weakness has not stabilized, and EUR could continue to decline. Support levels are at 1.0175 and 1.0100. The latter level is likely out of reach for now. To sustain the sharp increase in momentum, EUR must remain below 1.0350. There is another resistance level at 1.0300.”
1-3 WEEKS VIEW: “EUR plunged when it opened today. The sharp drop has resulted in an increase in downward momentum, and in the coming days, the risk is for further EUR weakness. However, it remains to be seen if it can break and remain below 1.0100. Looking ahead, the round-number support level of 1.0000 is expected to provide significant support as well. Overall, only a breach of 1.0380 (‘strong resistance’ level) would indicate that the weakness in EUR has stabilized. The ‘strong resistance’ level is expected to move lower in the coming days.”
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