The negative view on EUR/USD remains unchanged and the door is now open for a potential move to the 1.0900 area, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected EUR to “consolidate its loss and trade sideways within a 1.0960/1.1025 range yesterday”. However, it edged lower and touched 1.0956 before ending the day on a soft note at 1.0966. While EUR could continue to drift lower from here, lackluster momentum suggests the 1.0930 support is unlikely to come under serious threat. On the upside, only a move above 1.1000 would indicate that the current downward pressure has eased (the stronger resistance is at 1.1025)”.
Next 1-3 weeks: “As highlighted, the strong decline last Friday has resulted in a rapid improvement in downward momentum and the weakness in EUR could extend to 1.0930. The next support below 1.0930 is at 1.0900. Resistance is at 1.1025 but only a break of 1.1045 (‘key resistance’ was at 1.1060 yesterday) would indicate that the current weakness in EUR has stabilized”.
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