EUR/USD risks extra losses while below the 1.1070 level, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-hour view: We did not anticipate the surge in volatility in EUR yesterday. After rising to a high of 1.1143, EUR sold off sharply and plunged to 1.0964. Unsurprisingly, the sharp and swift drop is oversold. However, the weakness has not stabilised just yet. Today, EUR could drop below the major support near 1.0965, but it might not be able to maintain a foothold below this level. The next support at 1.0920 is unlikely to come into view. Resistance is at 1.1010, followed by 1.1035.
Next 1-3 weeks: Our latest narrative was from two days ago (26 Jul, spot at 1.1050), wherein, while EUR “could dip below 1.1010, the probability of it dropping to the next major support at 1.0965 is not high for now.” Yesterday, EUR rose above our ‘strong resistance’ level of 1.1135 (high was 1.1143) before plunging to a low of 1.0965 (unfortunately, we were unable to anticipate the spike in volatility). From here, EUR must break and stay below 1.0965 before further EUR weakness is likely. The risk of EUR breaking clearly below 1.0965 will remain intact as long as it stays below 1.1070 in the next couple of days. Looking ahead, the next levels to watch below 1.0965 are at 1.0920 and 1.0865.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
