EUR/USD Plummets to Oversold Levels as Analysts See Limited Downside

EUR/USD fell to 1.1358, leaving it deeply oversold. UOB's Quek Ser Leang and Lee Sue Ann believe that while the Euro could weaken further, downside is relatively limited. They cite strong supports at 1.1355 and 1.1325 as key levels to watch. A break higher above 1.1400-1.1430 would signal stabilizing Euro weakness.

The pair plummeted to a low of 1.1367 two days ago, extended its decline to 1.1358 yesterday, and closed marginally lower by 0.01% at 1.1379. Downward momentum is starting to slow, suggesting that EUR is unlikely to weaken much further.

In their previous update on Wednesday (23 Sep), the analysts had highlighted a chance for EUR to test 1.1400, but with low odds of a sustained decline below this level. The breach of 1.1400 triggered a sharp decline, reaching a low of 1.1358 yesterday.