EUR/USD faces further downside to 1.1390 – UOB

In view of FX Strategists at UOB Group, the pair could break below the 1.1450 area and re-visit 1.1390 in the next weeks.

Key Quotes

24-hour view: “EUR traded between 1.1482 and 1.1549 last Friday, relatively close to our expected 1.1485/1.1555 consolidation range. The consolidation phase appears incomplete and further range trading is expected from here, albeit likely at a higher range of 1.1495/1.1565″.

Next 1-3 weeks: “EUR traded in a relatively quiet manner last Friday and ended the day slightly higher in NY (closed at 1.1523, +0.08%). As highlighted last Thursday (04 Oct, spot at 1.1480), while the outlook for EUR is still ‘negative’, the prospect a move to 1.1450 have diminished. That said, only a break of 1.1580 (no change in ‘key resistance’ level) would indicate that a short-term bottom is in place. Meanwhile, EUR could trade sideways for the next 1-2 days but in order to revive the current waning momentum, EUR should head lower soon or the risk of a short-term bottom would increase quickly. Looking ahead, a break of 1.1450 would shift the focus to 1.1390″.