FX Strategists at UOB Group stated EUR/USD may want to grind decrease and go to the 1.1600 quarter in the subsequent weeks.
24-hour view: “Yesterday, we highlighted that ‘while EUR may want to weaken further, the nevertheless oversold stipulations endorse that EUR is not likely in a position to ruin the primary assist at 1.1670 for now’. The subsequent EUR weak spot surpassed our expectations as EUR breached 1.1670 and dropped to 1.1664. Despite the decline, downward momentum has now not increased with the aid of all that much. From here, EUR should side decrease and check the subsequent principal help at 1.1640 first earlier than the danger of a rebound would increase. Resistance is at 1.1695 however solely a ruin of 1.1715 would point out that the contemporary downward strain has eased.”
Next 1-3 weeks: “We became bad on EUR two days (18 Aug, spot at 1.1710). We mentioned the day gone by that ‘the hazard for EUR is nonetheless on the draw back and the subsequent degree to center of attention on is at 1.1670 observed through 1.1640’. EUR in consequence dropped to 1.1664. While downward momentum has no longer elevated through much, the danger is nonetheless for a decrease EUR. A wreck of 1.1640 would shift the focal point to the main and alternatively indispensable degree at 1.1600. Overall, the draw back danger is deemed intact as lengthy as EUR stays under 1.1745 (‘strong resistance’ degree in the past at 1.1775).”