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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“.