In opinion of FX Strategists at UOB Group, EUR/USD still targets the 1.10 area in the near term.
Key Quotes
24-hour view: “Instead of “trading sideways”, EUR slipped to a low of 1.1034 during London hours before trading sideways for rest of the sessions. Despite the decline, downward momentum has not improved by much. That said, it is too early to expect a recovery. From here, EUR is expected to drift lower to 1.1025. The strong support at 1.1000 is likely out of reach for today. On the upside, only a move above 1.1090 would indicate the current mild downward pressure has eased (minor resistance is at 1.1070)”.
Next 1-3 weeks: “There is not much to add to the update from Tuesday (06 Nov, spot 1.1075). As highlighted, the current movement is viewed as a “corrective pull-back” and EUR is likely to “trade with a downside bias towards 1.1000″ within these couple of weeks. EUR dropped to 1.1034 yesterday before recovering to end the day slightly lower at 1.1049 (-0.14%). Downward momentum has picked up slightly and the focus is still at 1.1000. That said, the prospect for a sustained decline below 1.1000 has not improved by much. All in, only a move above 1.1125 (‘strong resistance’ previously at 1.1140) would suggest that the current downward pressure has eased”.
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