Euro (EUR) may take a look at the 1.1380 degree; a sustained drop beneath this degree appears unlikely. Within the longer run, EUR view stays unfavourable; the subsequent degree to look at is 1.1350, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
EUR view stays unfavourable
24-HOUR VIEW: “The sharp selloff that despatched EUR plunging to a low of 1.1404 was stunning (we had been anticipating consolidation). What isn’t a surprise, is situations are deeply oversold. Nonetheless, the weak spot has not stabilised, and at this time, EUR may take a look at the 1.1380 degree (there may be one other help degree at 1.1400). Given the oversold situations, a sustained drop beneath this degree appears unlikely. On the upside, resistance ranges are at 1.1460 and 1.1490.”
1-3 WEEKS VIEW: “We turned unfavourable on EUR two days in the past, 29 Jul (spot at 1.1595). We indicated that it ‘is prone to break the 1.1540/1.1555 help zone.’ After EUR broke the help zone, we indicated yesterday (30 Jul, spot at 1.1550) that ‘the extent to look at now’s 1.1500.’ We didn’t count on EUR to rapidly break beneath 1.1500 and plunge to 1.1399. EUR closed sharply decrease by 1.22% (1.1404). We keep our unfavourable EUR stance. From right here, the subsequent degree to look at is 1.1350. To take care of its sturdy downward momentum, EUR should maintain beneath 1.1550 (‘sturdy resistance’ degree was at 1.1655).”
