Further downside seen in EUR/USD – UOB

FX Strategists at UOB Group still see extra downside in the pipeline for EUR/USD.

Key Quotes

24-hour view: “We expected EUR to “grind lower” yesterday but instead it went into a sort of stasis as it traded within a tight 20 pips range (between 1.1005 and 1.1025). The 20 pips range appears to be smallest 1-day range this year. The price action offers no fresh clues and EUR could continue to trade sideways. Expected range for today, 1.1005/1.1040”.

Next 1-3 weeks: “In our update from early last Friday (22 Nov, spot at 1.1065), we highlighted “upward pressure has eased” and “EUR is likely to continue to trade sideways between 1.1010 and 1.1115 for a while more”. However, EUR subsequently dropped sharply on Friday before extending its decline yesterday (25 Nov) and dipped below the bottom of the expected range (low of 1.1002). Downward momentum has picked up, albeit not by much. From here, EUR could trade with a downward bias towards 1.0965 even though the month-to-date low is expected to provide decent support for the next few days. Resistance is at 1.1035 but only a move above 1.1065 would indicate the current mild downward pressure has eased”.