Euro: Downside risks while 1.1585 holds against US Dollar – UOB
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight growing downside momentum in EUR/USD after a sharp drop to 1.1591, though they see limited scope for a sustained break below 1.1585 in the very near term.
UOB strategists observe growing downside momentum in the EUR/USD currency pair, after a notable drop to 1.1591. However, they believe there is limited potential for a sustained breach of the 1.1585 support level in the near term. If the EUR were to close below 1.1585, it would elevate the risk of a subsequent move towards 1.1565.
Meanwhile, resistance is identified around 1.1645. Over the course of the next few weeks, a daily closing price under 1.1585 would heighten the risk of a transition towards 1.1565. Resistance can be found around 1.1645. According to the FXStreet Insights Team, EUR has been expected to trade with an upside bias since late last week.
Analysts noted that the upside bias remains intact, yet EUR should remain within a narrower range of 1.1585/1.1670. Although downward momentum is starting to accumulate, it is not sufficient to suggest a sustained decline. If EUR were to close below 1.1585, it would increase the probability of a break below the next major support level at 1.1565.
Conversely, a breach of the 1.1645 resistance level would indicate that EUR is likely to continue trading within a range.
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