So, the Chinese crisis hurt the US dollar as the Fed is unlikely to hike in September. But the ECB could act as well.
So, is the EUR-rally over? The team at UOB have their say:
Here is their view, courtesy of eFXnews:
The bullish EUR phase that started last Friday has likely ended with the break below 1.1360 yesterday, argues UOB Group.
“The spike to the high of 1.1710/15 is likely a ‘blow-off’ and as we highlighted in our update yesterday, the odds for move to reclaim 1.1710/15 is rather low,” UOB adds.
“From here, we believe the current weakness is a corrective pull-back but in view of the large moves recently, the down-move could extend lower to test the major support at 1.1215 with an outside chance for a deeper drop to 1.1105. On the upside, strong resistance is at 1.1560 ahead of the now very strong resistance at 1.1625,” UOB projects.
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