Euro: Downside scope seen limited against US Dollar – UOB
UOB’s Quek Ser Leang and Lee Sue Ann highlight that EUR/USD extended its recent slide to 1.1358, leaving conditions deeply oversold.
UOB analysts Quek Ser Leang and Lee Sue Ann have noted that the Euro (EUR) against the US Dollar (USD) has continued its recent decline to 1.1358, rendering conditions highly oversold. While EUR may experience further depreciation, the analysts believe that downside risks are relatively limited. Key support levels are identified at 1.1355 and 1.1325, with resistance positioned at 1.1400–1.1430, where a break would signal stabilization of EUR's weakness.
Over the past 24 hours, EUR dropped from a low of 1.1367 to 1.1358, only to close marginally lower by 0.01% at 1.1379. Momentum appears to be slowing, indicating EUR may range-trade within the 1.1355–1.1400 range. In the next one to three weeks, EUR is likely to test the 1.1400 level, although the likelihood of a sustained decline below this figure is deemed low.
Strong support levels persist at 1.1355 and 1.1325. A breach of 1.1430, previously identified as a 'strong resistance' level, would indicate stabilizing EUR weakness.
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.
