It is possible that the Euro will test the 1.1500 level before bouncing; Key support at 1.1470 is unlikely to be threatened. In the long term, the euro’s bias has shifted to the downside; It is too early to know whether it can reach 1.1470, UOB Group FX analysts Kuik Ser Liang and Peter Chia noted.
It may test the 1.1500 level before a bounce
24-hour view: “Two days ago, we expected the euro to test 1.1570. After the euro subsequently fell to a low of 1.1570, we confirmed yesterday, when the euro was at 1.1590, that “there is a chance for the euro to test 1.1560”. We stated that “key support at 1.1540 is still unlikely to emerge”. Our view on euro weakness was correct, but we did not expect the sharp decline that easily broke below 1.1540 (low was 1.1517) Although the Euro has bounced off the bottom, the weakness has not stabilized today, the Euro could test the 1.1500 level before a more sustained bounce is unlikely to be threatened at the 1.1555 and 1.1575 resistance levels.
1-3 week view: “We highlighted on Tuesday (18 November, spot at 1.1590) that the euro is expected to trade in a range between 1.1540 and 1.1640.” The Euro fell sharply yesterday and broke below 1.1540. The bias has shifted to the downside, although it is currently too early to tell if the Euro can reach the lows seen early in the month, near 1.1470. “In general, only a break of 1.1595 (‘strong resistance’ level) will indicate fading of bearish bias.”
