The EURO (EUR) appears poised for ongoing weakness in the market, with analysts suggesting potential limits to its declines around the key levels of 1.1030 and 1.1000. Recent movements indicate a notable increase in downward momentum, which may lead to a prolonged depreciation of the EURO against other currencies.
In the short term, there was a marked shift in the trading pattern for the EURO , breaking through previously held support levels. The currency’s recent downturn surprised many, as it breached the significant support at 1.1060 and reached a low of 1.1044. Despite being in an oversold condition, the EURO has yet to find stabilization. As trading resumes, expectations are set for further weakening, with 1.1030 as a likely test point, while the robust support at 1.1000 might remain intact, at least in the immediate future. The levels of resistance to watch are 1.1085 and 1.1110.
Looking ahead over a one to three-week timeframe, previous analysis indicated that the EURO had entered a phase of range trading, likely operating between 1.1060 and 1.1215. However, following a recent peak above 1.1200, the EURO has retreated sharply, breaking through the 1.1060 support level. With a closing low of 1.1067, the currency stands at a three-week low, marking a 0.60% decline.
Current market behavior suggests a gathering downward momentum, compelling traders to keep a close watch on the critical thresholds of 1.1030 and 1.1000 for potential further declines. For any upward momentum to materialize, the EURO will need to stay below the strong resistance level of 1.1150 to avoid undermining the buildup of selling pressure.
