EUR/USD Suggests that 1.0000 - UOB Will Break Down.

Lee Sue Ann and Quek Ser Leang, FX Strategists of UOB Group, predict that EUR/USD may soon revert to parity.

July 12, 2022 - 12:30 PM 283 views

EUR/USD Suggests that 1.0000 - UOB Will Break Down.

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© EUR/USD Suggests that 1.0000 - UOB Will Break Down.

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Lee Sue Ann and Quek Ser Leang, FX Strategists of UOB Group, predict that EUR/USD may soon revert to parity.

Key Quotes

24-Hour View: Yesterday, the EUR fell to 1.0032 before finishing weakly at 1.0039. (-1.41 percent ). Strongly declining momentum indicates that EUR might breach the crucial support level at 1.0000. However, given the extreme oversold conditions, it's possible that EUR won't be able to retain a foothold below this level (next support is at 0.9960). Resistance is found at 1.0095, then 1.0130.

In the Next 1-3 Weeks:  "Since the end of last month, we have maintained a pessimistic EUR view. Even though oversold conditions should restrict the rate of any additional loss, we indicated that further EUR depreciation still appears likely in our most recent narrative from last Friday (08 Jul, spot at 1.0185). The next support below 1.0100 is at 1.0000, as we stated. Later, EUR fell below 1.0100, bounced back, and yesterday (July 11), it slid to a low of 1.0032. Considering the strong negative momentum, a breach of 1.0000 is not unexpected. The levels at 0.9960 and 0.9920 are the ones to concentrate on next. On the plus side, a break of 1.0180 (earlier at 1.0270) would signal that the EUR's weakness has stabilised.

 



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