Euro: Downside risk remains in focus against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight an unexpectedly sharp EUR/USD drop to 1.1577, with the pair closing weaker at 1.1584. They see scope for further downside but doubts a quick test of 1.1550 due to oversold conditions.
Euro (EUR) continues to face downside risks as it moves against the US Dollar (USD), according to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann. The EUR/USD pair dropped to a low of 1.1577, and closed at 1.1584 on Friday, indicating an unexpected shift in market sentiment. While there is potential for further decline, UOB analysts are doubtful about a quick test of the 1.1550 level due to oversold conditions in the market.
In the short term, resistance levels stand at 1.1600 and 1.1625, which could cap any rebounds. In the broader perspective, UOB maintains upside targets at 1.1800 and 1.1850. The major support level at 1.1550 appears out of reach for now, but another support level at 1.1570 remains viable. Resistance at 1.1600 suggests that if the pair breaks above 1.1625, it could indicate stabilization in the decline.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Australian Dollar: RBA hike risks linger – OCBC fxstreet.com
