FX Strategists at UOB Group still view as possible a potential breakout of the key resistance around 1.10 in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday EUR “could edge above the 1.1000 level” but held the view “the next resistance at 1.1025 is still unlikely to come into the picture”. EUR subsequently touched 1.1000 before easing off to end the day little changed at 1.0970 (-0.06%). The recent mild upward pressure appears to have dissipated and the downside risk has increased. From here, unless there is a clear break of 1.1000, EUR could edge lower to 1.0950. The next support at 1.0930 is a relatively strong level and is unlikely to yield”.
Next 1-3 weeks: “EUR tested the 1.1000 level for the third straight day (high of 1.1000) before easing off to close little changed at 1.0970 (-0.05%). The price action was not surprising as we indicated last Thursday (03 Oct, spot at 1.0960) that “the current movement is viewed as the early stages of a consolidation phase”. That said, as highlighted yesterday (07 Oct, spot at 1.0980), looking forward, the top of the expected 1.0890/1.1025 range appears to be more vulnerable“.
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