/EUR/USD faces strong support near 1.2220 – UOB | by Pablo Piovano | FXStreet

EUR/USD faces strong support near 1.2220 – UOB | by Pablo Piovano | FXStreet

FX Strategists at UOB Group expects the downside in the pair to resume, although tough support lies around 1.2220. Key Quotes 24-hour view: “EUR tested the top of the expected 1.2375/1.2445 consolidation range but the subsequent one-way plunge from a high of 1.2446 was clearly not expected. While the rapid decline appears to be running ahead of itself, another ‘down-leg’ towards the next support at 1.2260 would not be surprising. At this stage, a sustained decline below this level is not expected (next support is at 1.2220). Resistance is at 1.2350 followed by 1.2390. The 1.2446 high is unlikely to come into the picture for now”. Next 1-3 weeks: “The recent recovery ended abruptly as EUR plunged after touching a high of 1.2446 yesterday (we had previously expected the rebound to extend to 1.2500). The sharp and swift drop took out the key support at 1.2300 with an overnight low of 1.2296. The break of the key support has shifted the pressure back to the downside but at this stage, any weakness is expected to encounter solid support at 1.2220. This level is followed by the major support at 1.2155, the low seen earlier this month. Resistance is at 1.2390 followed by the high near 1.2445. The latter level is acting as a very strong resistance now”.