The pair’s negative stance is unchanged in the short-term horizon, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We indicated yesterday that there is “room for further EUR weakness” but warned, “the major 1.1430 support is unlikely to yield so easily”. EUR briefly dipped to a low of 1.1436 during early London hours before rebounding to trade sideways for rest of the sessions. Indicators are mostly ‘neutral’ now which suggest sideway trading for today, likely within a 1.1440/1.1500 range”.
Next 1-3 weeks: “The strong 1.1430 support remains intact as EUR briefly dipped to a low of 1.1436 before rebounding quickly to end the day little changed (NY close of 1.1469, +0.05%). While we continue hold a ‘negative’ view, we indicated yesterday (23 Oct, spot at 1.1465), “the prospect for a break of 1.1400 has diminished”. We added, “in order to improve the odds for a breach of 1.1400, EUR has to crack the strong 1.1430 level within these 1 to 2 days or the current price action would likely ‘morph’ into a consolidation phase”. From here, time appears to be running out for further EUR weakness but only a break of the ‘key resistance’ at 1.1550 (no change in level) would indicate that the current downward pressure has eased”.
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