FX Strategists at UOB Group see EUR/USD navigating within the 1.1680-1.1800 range in the next weeks.
Key Quotes
24-hour view: “EUR lurched lower during NY hours and dropped to a low of 1.1729 before closing on a weak note at 1.1744 (-0.58%). While the rapid drop appears to be running ahead of itself, there is scope for EUR to weaken further even though the 1.1700 support is likely out of reach for now (minor support is at 1.1720). On the upside, a break of 1.1780 (minor resistance is at 1.1760) would indicate the current downward pressure has eased.”
Next 1-3 weeks: “EUR closed on a firm note last Friday (09 Oct) but gave up most of its gains yesterday (13 Oct) as it dropped sharply by -0.58% (1.1744), its biggest 1-day drop in about 2 months. The failure to maintain a foothold above 1.1820 coupled with the sharp drop yesterday indicates that EUR is still trading in a consolidation phase. In other words, EUR could trade between the two major levels of 1.1680 and 1.1820 for a while a more. That said, shorter-term downward momentum has improved and a test of 1.1680 would not be surprising.”
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