FX Strategists at UOB Group now see EUR/USD slipping back to the 1.0965 level in the next weeks.
Key Quotes
24-hour view: “While EUR dipped below the strong 1.1010 support level, there was not much of a follow-through as it rebounded from 1.1002 and traded sideways for rest of the sessions. Downward momentum appears to be struggling but only a move above 1.1035 would indicate that the current weakness has stabilized. Until then, EUR could continue to grind lower even though the month-to-date low near 1.0985 is not expected to come under threat”.
Next 1-3 weeks: “In our update from early last Friday (22 Nov, spot at 1.1065), we highlighted “upward pressure has eased” and “EUR is likely to continue to trade sideways between 1.1010 and 1.1115 for a while more”. However, EUR subsequently dropped sharply on Friday before extending its decline yesterday (25 Nov) and dipped below the bottom of the expected range (low of 1.1002). Downward momentum has picked up, albeit not by much. From here, EUR could trade with a downward bias towards 1.0965 even though the month-to-date low is expected to provide decent support for the next few days. Resistance is at 1.1035 but only a move above 1.1065 would indicate the current mild downward pressure has eased”.
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