FX Strategists at UOB Group suggested EUR/USD remains side-lined and could re-test the 1.1680 region in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is scope for EUR to weaken further but 1.1700 is likely out of reach for now’. However, EUR traded in a quiet manner between 1.1718 and 1.1770 before closing largely unchanged at 1.1746 (+0.02%). The underlying tone still appears to be a tad soft and we continue see chance for EUR to edge lower. That said, any weakness is likely limited to a test of 1.1705 (next support is at 1.1680). On the upside, a break of 1.1780 would indicate the current mild downward pressure has eased (minor resistance is at 1.1760).”
Next 1-3 weeks: “EUR closed on a firm note last Friday (09 Oct) but gave up most of its gains yesterday (13 Oct) as it dropped sharply by -0.58% (1.1744), its biggest 1-day drop in about 2 months. The failure to maintain a foothold above 1.1820 coupled with the sharp drop yesterday indicates that EUR is still trading in a consolidation phase. In other words, EUR could trade between the two major levels of 1.1680 and 1.1820 for a while a more. That said, shorter-term downward momentum has improved and a test of 1.1680 would not be surprising.”
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