In opinion of FX Strategists at UOB Group, EUR/USD could still slip back to the 1.1530 region while below 1.1655.
Key Quotes
24-hour view: “EUR traded between 1.1579 and 1.1622 yesterday, narrower than our expected sideway-trading range of 1.1580/1.1635. The underlying tone has weakened somewhat and EUR could drift lower but any decline is unlikely to break last week’s low near 1.1560 (minor support is at 1.1580). Resistance is at 1.1620 followed by 1.1635.”
Next 1-3 weeks: “Our latest narrative from Monday (04 Oct, spot at 1.1605) still stands. As highlighted, downward momentum has slowed and a break of 1.1655 (no change in ‘strong resistance’ level) would indicate that the weakness in EUR that started about a week ago has come to an end. As long as the ‘strong resistance’ at 1.1655 is not breached, there is still chance, albeit a slim one, for EUR to head lower towards the major support at 1.1530. Looking ahead, a breach of the ‘strong resistance’ level would indicate that EUR could consolidate and trade sideways for a period of time.”
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