FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang suggest a sustained breach of 0.9900 in EUR/USD remains unlikely in the short term.
24-hour view: “Our expectations for EUR to ‘edge higher’ yesterday did not materialize as it traded between 0.9964 and 1.0029 before closing little changed at 1.0022 (+0.07%). The underlying tone still appears to be on the firm side and we continue to see room for EUR to edge higher. That said, any advance is unlikely to challenge the major resistance at 1.0070 (there is another resistance at 1.0050). Support can be found at 1.0000 and 0.9975.”
Next 1-3 weeks: “Our latest narrative from last Wednesday (14 Sep, spot at 0.9980) still stands. As indicated, EUR is under pressure but at this stage, a sustained decline below the major support at 0.9900 appears unlikely. On the upside, a breach of 1.0070 (no change in ‘strong resistance’ level from yesterday) would indicate that the current downward pressure has eased.”