EUR/USD: It Seems Unlikely We'll See a Drop Below 1.1615 – Insights from UOB Group
When it comes to the Euro (EUR), recent trends suggest a slight uptick in downward pressure, which might cause the currency to dip a little. However, analysts at UOB Group, Quek Ser Leang and Peter Chia, believe that a significant drop below the 1.1615 mark is improbable. Over a longer time frame, the weakness observed in the EUR since the beginning of last week has stabilized. Currently, it appears that the Euro will consolidate within the range of 1.1615 to 1.1730.
To put things into perspective, while the EUR has shown some weakness recently, it seems to have found a foothold.
24-HOUR ANALYSIS: "On Monday, the Euro saw an impressive rebound, reaching a high of 1.1698. During the early Asian trading session yesterday, as the Euro hovered around 1.1665, we noted an important observation: 'The sharp rebound appears to be ahead of itself, and it’s unlikely that the Euro will climb much higher. Today, we expect the Euro to trade within a specific range, likely between 1.1640 and 1.1700.' Subsequently, the Euro traded sideways until the New York session, where it briefly touched 1.1677 before falling to a low of 1.1633, ultimately closing slightly lower at 1.1641, marking a decrease of 0.22%. This recent price movement indicates a slight increase in downward momentum. Looking ahead to today, we anticipate that the Euro may edge lower; however, breaking through the critical support level at 1.1615 seems quite unlikely. On the upside, we identify resistance levels at 1.1660 and 1.1670.
1-3 WEEKS OUTLOOK: "After maintaining a bearish outlook on the Euro for the past week, we updated our position yesterday (January 13, with the spot at 1.1665) by stating that 'the weakness in the Euro from early last week has stabilized.' We pointed out that the Euro 'appears to have entered a consolidation phase, and for the time being, it is likely to trade between 1.1615 and 1.1730.' Our perspective remains unchanged. Looking forward, if the Euro manages to break and stay below 1.1615, this could set off a decline towards 1.1585."
