FX Strategists at UOB Group sees further weakness in EUR/USD and a probable test of yearly lows at 1.1025.
Key Quotes
24-hour view: “Despite the sharp bounce from a low of 1.1065, it is too soon to expect a sustained recovery. EUR is more likely to consolidate its loss and trade sideways at these lower levels, likely between 1.1065 and 1.1115″.
Next 103 weeks: “EUR closed lower for the fourth straight day last Friday as it dropped to 1.1065 before settling at 1.1089 (-0.15%). Downward pressure has increased further and from here, a retest of the early August low of 1.1025 would not be surprising. That said, it is unclear at this stage whether there is enough momentum to break the crucial 1.1000 level. On the upside, only a move above 1.1160 would indicate that the current downward pressure has eased”.
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