- Analytics
- News and Tools
- Market News
- EUR/USD risks a drop below 1.0400 – UOB
EUR/USD risks a drop below 1.0400 – UOB
UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia suggest EUR/USD could weaken further and even break below 1.0400.
Key Quotes
24-hour view: The sharp selloff that sent EUR to a fresh year’s low of 1.0475 came as a surprise (we were expecting range trading). While the rapid decline appears to be overdone, there is no sign of stabilisation just yet. Today, EUR is likely to weaken further, but the support level at 1.0430 could be out of reach. On the upside, 1.0535 (minor resistance is at 1.0505) is likely strong enough to cap any intraday rebound.
Next 1-3 weeks: Yesterday (02 Oct, spot at 1.0560), we highlighted that EUR “appears to have entered a consolidation phase,” and we expected it to trade in a range between 1.0495 and 1.0650. We did not anticipate EUR to plunge to a fresh year’s low of 1.0475. The price action suggests that EUR is not in a consolidation phase. Instead, it is still likely in a bearish phase. From here, as long as EUR remains below 1.0565, it is likely to weaken to 1.0430, potentially below 1.0400.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
