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In opinion of FX Strategists at UOB Group, EUR/USD could now attempt a move to the 1.0870 region.

Key Quotes

24-hour view: “Anticipation for a “break of the major 1.0900 level” did not materialize as EUR rebounded after touching 1.0903. Downward momentum has eased with the recovery and EUR has likely moved into a consolidation phase and is likely to trade sideways to slightly higher from here. Expected range for today; 1.0920/1.0970″.

Next 1-3 weeks: “EUR eked out a fresh low of 1.0907 last Friday before recovering to end the day higher by +0.16% (1.0938). There is no change to our view from Friday (27 Sep, spot at 1.0920) wherein EUR is “ready to tackle the next support at 1.0870″. That said, oversold shorter-term conditions could lead to 1 to 2 days of consolidation first but only a move above 1.0990 (no change in ‘strong resistance’ level) would indicate the current downward pressure has eased”.