EUR/USD: Probability for EUR to check the 1.1540/1.1555 assist zone earlier than stabilisation – UOB Group

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EUR/USD: Some retracement in the near term – OCBC

Outsized drop seems extreme, however there’s a probability for EUR to check the 1.1540/1.1555 assist zone earlier than stabilisation will be anticipated. Within the longer run, sturdy surge in downward momentum suggests EUR is more likely to break the 1.1540/1.1555 assist zone; the subsequent degree to look at is 1.1500, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.

The subsequent degree to look at is 1.1500

24-HOUR VIEW: “When EUR was at 1.1755 within the early session yesterday, we highlighted the next: ‘Upward momentum has elevated barely, and there’s a probability for EUR to rise above 1.1775. The main resistance at 1.1795 is probably going out of attain for now.’ Nevertheless, after edging to a excessive of 1.1772, EUR staged a dramatic reversal, because it nose-dived to a low of 1.1584. Whereas the outsized drop seems extreme, there’s a probability for EUR to check the 1.1540/1.1555 assist zone earlier than stabilisation will be anticipated. Resistance ranges are at 1.1630 and 1.1660.”

1-3 WEEKS VIEW: “Our most up-to-date narrative was from final Wednesday (23 Jul, spot at 1.1740), wherein we indicated that the current value motion ‘signifies additional EUR power, possible towards 1.1795.’ After edging larger for a few days, EUR plunged unexpectedly in a pointy and abrupt reversal. EUR closed at 1.1588, down a considerable 1.29% — its second-largest one-day decline this 12 months. The sturdy surge in downward momentum suggests EUR is more likely to break the 1.1540/1.1555 assist zone. The subsequent degree to look at is 1.1500. The sturdy downward momentum will stay intact so long as EUR holds beneath 1.1700 (‘sturdy resistance’ degree).”