EUR/USD fell to 1.1568 before rising to finish close to 1.1598, with little downward momentum, according to UOB's Quek Ser Leang. The Euro (EUR) is anticipated to test significant support at 1.1565 during the day, although a clear break is thought to be unlikely, with resistance at 1.1605 and 1.1620. A close below 1.1585 would increase the likelihood that 1.1565 will give way over a period of one to three weeks.
Risk on the downside but little momentum
"24-HOUR VIEW: Last Thursday, the euro fell to a low of 1.1591. We said that "downward momentum is building, albeit not dramatically" when it was at 1.1610 in the early Asian session on Friday. Although we believed that EUR "may test the major support around 1.1585," we also noted that "a sustained slide below this level is improbable based on the prevailing momentum." EUR swiftly recovered to close at 1.1598, down 0.10%, although falling more than anticipated to 1.1568. There is potential for EUR to hit the key support level at 1.1565, even though there has not been a noticeable rise in downward momentum. It seems improbable that there will be a noticeable break below this threshold. 1.1605 and 1.1620 are the points of resistance.
"1-3 WEEKS VIEW: We emphasized that "the bullish bias remains intact, but EUR should stay within a smaller range of 1.1585/1.1670" last Monday, September 7, at 1.1625. On Friday, September 11, at 1.1610, we emphasized the following as EUR fell to a low of 1.1591: Although downward momentum is beginning to accumulate, it is not enough to suggest a long-term fall. The likelihood of a break below the next significant support level at 1.1565 would rise, though, if EUR closed below 1.1585. A break of the "strong resistance" level of 1.1645 on the upside would suggest that EUR is probably going to stay in a range. Following a brief decline to 1.1568, EUR recovered to settle at 1.1598 (-0.10%). Although we are updating the "strong resistance" level to 1.1635, we still maintain the same opinion as last Friday. The next level to keep an eye on below 1.1565 is 1.1535."
Risk on the downside but little momentum
"24-HOUR VIEW: Last Thursday, the euro fell to a low of 1.1591. We said that "downward momentum is building, albeit not dramatically" when it was at 1.1610 in the early Asian session on Friday. Although we believed that EUR "may test the major support around 1.1585," we also noted that "a sustained slide below this level is improbable based on the prevailing momentum." EUR swiftly recovered to close at 1.1598, down 0.10%, although falling more than anticipated to 1.1568. There is potential for EUR to hit the key support level at 1.1565, even though there has not been a noticeable rise in downward momentum. It seems improbable that there will be a noticeable break below this threshold. 1.1605 and 1.1620 are the points of resistance.
"1-3 WEEKS VIEW: We emphasized that "the bullish bias remains intact, but EUR should stay within a smaller range of 1.1585/1.1670" last Monday, September 7, at 1.1625. On Friday, September 11, at 1.1610, we emphasized the following as EUR fell to a low of 1.1591: Although downward momentum is beginning to accumulate, it is not enough to suggest a long-term fall. The likelihood of a break below the next significant support level at 1.1565 would rise, though, if EUR closed below 1.1585. A break of the "strong resistance" level of 1.1645 on the upside would suggest that EUR is probably going to stay in a range. Following a brief decline to 1.1568, EUR recovered to settle at 1.1598 (-0.10%). Although we are updating the "strong resistance" level to 1.1635, we still maintain the same opinion as last Friday. The next level to keep an eye on below 1.1565 is 1.1535."
