A deeper drop could drag EUR/USD to the 1.0515 zone in the next few weeks, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Lean
to the 1.0515 zone in the next few weeks, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.24-hour view: The sharp selloff that sent EUR plunging to a 6-month low of 1.0629 came as a surprise . While the decline appears to be overdone, the weakness in EUR has not stabilised. Today, EUR could decline further, but it is unlikely to break clearly below 1.0600. Resistance is at 1.0665, a break of 1.0690 would mean that EUR is not weakening further.
Next 1-3 weeks: On Tuesday , we indicated that “the weakness in EUR has stabilised”, and we held the view that EUR “is likely to trade in a range between 1.0690 and 1.0820.” Yesterday , we highlighted that “Looking ahead, if EUR breaks and stays below 1.0690, it will increase the risk of it dropping towards the major support at 1.0635.” In London trade, not only did EUR break below 1.0690, it also dropped slightly below May’s low of 1.0635 .
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