UOB Group FX strategists Quek Ser Leang and Lee Sue Ann indicate that the Euro (EUR) may face reduced downside risk unless it breaches the 1.0870 level. A break above this resistance would suggest that the EUR/USD pair might avoid dropping further to the 1.0760 target.
24-Hour View
Previously, it was anticipated that the EUR could decline to 1.0790 before rebounding. However, the EUR fluctuated between 1.0801 and 1.0849, closing at 1.0825, a modest increase of 0.09%. Current momentum lacks direction, with no significant increase in either upward or downward pressure. For today, the EUR is expected to trade within a range of 1.0800 to 1.0850.
1-3 Weeks View
The bearish sentiment towards the EUR, which began in mid-July, remains. The strategists’ recent analysis from July 30, when the EUR/USD was at 1.0820, highlighted a negative outlook with a focus on the 1.0760 level. While the EUR has yet to decline further, signs of weakening downward momentum suggest that the likelihood of reaching 1.0760 is decreasing. A breach of the 1.0870 level would indicate that the 1.0760 target might not be achievable in the near term.
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