Home EUR/USD now focused on the 1.1180 region – UOB
FXStreet News

EUR/USD now focused on the 1.1180 region – UOB

FX Strategists at UOB Group noted EUR/USD now faces downside bias and targets the 1.1180 zone.

Key Quotes

24-hour view: “Strong US jobs data sent EUR plummeting to a low of 1.1205. The sharp decline is running too fast, too soon and while a test of 1.1200 would not be surprising, the mid-June low near 1.1180 is not expected to come into the picture for today. On the upside, only a move above 1.1260 would indicate that the current weakness has stabilized (minor resistance is at 1.1245)”.

Next 1-3 weeks: “We have held the same view last Tuesday (02 Jul, spot at 1.1285) wherein EUR “is in a sideway-trading phase” but we added, “the soft underlying tone suggest the immediate bias is tilted to the downside”. However, the expected ‘solid support’ at 1.1220 (bottom of the expected 1.1220/1.1340 range) did not materialize as EUR crashed to a low of 1.1205 last Friday (05 Jul). Downward momentum has improved even though not by as much as we would like. From here, EUR is expected to trade with a ‘downside bias’ towards the midJune low near 1.1180. A dip below this level is not ruled out but at this stage, the risk for a break of the year’s low at 1.1106 is not high. On the upside, only a move above the strong resistance at 1.1290 would indicate the current downward pressure has eased”.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.