EUR/USD could slip back to the 1.1650 region in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted last Friday that EUR ‘is likely to test the major support at 1.1680 first before a rebound can be expected’. EUR subsequently dipped to 1.1692 before rebounding to a high of 1.1745. Downward pressure has eased and the current movement is viewed as the early stages of a consolidation phase. For today, EUR is likely to trade sideways, expected to be between 1.1690 and 1.1750.”
Next 1-3 weeks: “Two days ago (14 Oct, spot at 1.1740), we held the view that EUR ‘is still in a consolidation phase but could test the bottom of the expected 1.1680/1.1800 range’. EUR did not quite test 1.1680 as it rebounded after touching a low of 1.1686 yesterday (15 Oct). Downward momentum is beginning to improve and the bias has shifted to the downside towards the next support at 1.1650. Only a break of 1.1790 would indicate the current mild downward pressure has eased. On a shorter-term note, 1.1765 is already a strong resistance level.”
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