EUR/USD currently faces a dip to 1.1740 ahead of 1.1700 in the next weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “Yesterday, our forecast for the EUR to ‘edge higher’ was erroneous, as it plummeted and broke through a couple of key support levels before closing on a dismal note at 1.1774. (-0.72 percent ). The quick loss is oversold, but with no indications of stabilization yet, EUR could go below 1.1740, the next support level. For the time being, a prolonged drop below this level appears unlikely (next support is at 1.1700). A break over 1.1820 (minor resistance at 1.1800) on the upside would signal that the recent weakness has stabilized.”
Within the next 1-3 weeks: “Last Friday (09 July, spot at 1.1845), we predicted that the EUR will consolidate and trade between 1.1790 and 1.1895. The ease with which EUR broke through the bottom of our projected range at 1.1790, as well as the subsequent weak daily closing at 1.1774 (-0.72%), indicate that the consolidation is done and EUR has likely entered a bearish phase. The level to watch is 1.1740; a clear break of this level would transfer the emphasis to 1.1700, which is a big level. Overall, the EUR is projected to be under pressure unless it can break through the 1.1840’strong resistance’ level.”/n
