FX Strategists at UOB Group noted that a surpass of 1.1655 should alleviate the downside pressure in EUR/USD.
Key Quotes
24-hour view: “Yesterday, we expected EUR to trade sideways within a 1.1575/1.1635 range. EUR subsequently traded between 1.1586 and 1.1640. The relatively quiet price actions suggest further sideway-trading would not be surprising, likely between 1.1580 and 1.1635.”
Next 1-3 weeks: “Our view from yesterday (04 Oct, spot at 1.1605) still stands. As highlighted, downward momentum has slowed further and a break of 1.1655 (no change in ‘strong resistance’ level) would indicate that the weakness in EUR that started about a week ago has come to an end. As long as the ‘strong resistance’ at 1.1655 is not breached, there is still chance, albeit a slim one, for EUR to head lower towards the major support at 1.1530. Looking ahead, a breach of the ‘strong resistance’ level would indicate that EUR could consolidate and trade sideways for a period of time.”
