According to FX Strategists at UOB Group, EUR/USD is still headed towards the 1.1020 region.
Key Quotes
24-hour view: “EUR traded between 1.1062 and 1.1112 yesterday, wider than our expected sideway trading range of 1.1070/1.1115. Despite the relatively ‘active’ price action, most indicators remain ‘flat’. That said, the quiet consolidation phase over the past few days appears to be close to ending. For now, EUR could continue to trade between 1.1060 and 1.1115 but a clear break out the range could lead to a rapid price action. The next support below 1.1060 is at 1.1025 while the resistance above 1.1115 is at 1.1160″.
Next 1-3 weeks: “There is not much to add as EUR eked out a fresh 3-week low of 1.1062 before recovering to close largely unchanged for the day at 1.1078 (-0.04%). We have held the same view since Monday (19 Aug, spot at 1.1095) wherein there is scope for EUR to retest the early August low of 1.1025. A dip below this level is not ruled out but as highlighted, the prospect for a break of the crucial 1.1000 level is not high. Only a move back above 1.1160 (no change ‘key resistance’ level) would indicate the current downward pressure in EUR has eased”.
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