EUR/USD could drop further and test 1.0930 – UOB


Further downside to the 1.0930 region in EUR/USD is not ruled out, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “While we expected EUR to move lower last Friday, we were of the view “1.1025 is likely out of reach”. The subsequent weakness exceeded our expectation by a wide margin as EUR not only sliced through 1.1025 but also cracked the major 1.1000 support. The rapid drop to a low of 1.0961 appears to be running ahead of itself and further sustained decline is unlikely for today. EUR is more likely to consolidate its loss and trade sideways, expected to be within a 1.0960/1.1025 range”.

Next 1-3 weeks: “We detected the weakened underlying tone in EUR last Friday (30 Aug, spot at 1.1060) and held the view that EUR is likely to “probe the bottom of the expected 1.1000/1.1130 range first”. However, instead of ‘probing’ 1.1000, EUR crashed through this strong support level and hit a 27-month low of 1.0961. The sudden lurch lower and the subsequent weak daily closing in NY (1.0989, -0.59%) has resulted in a rapid improvement in downward momentum. From here, EUR could extend its weakness to the next support at 1.0930. However, oversold short-term conditions could lead to a couple of days of consolidation first. Resistance is at 1.1025 but only a break of 1.1060 (‘key resistance’) would indicate that the current weakness in EUR has stabilized”.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays defensive near 1.0500 amid French political jitters

EUR/USD stays defensive near 1.0500 amid French political jitters

EUR/USD is battling 1.0500 in the European session on Wednesday. The pair trades with caution amid renewed US Dollar buying and French political uncertainty as the government faces a no-confidence vote in a busy day ahead. US data, Lagarde and Powell eyed. 

EUR/USD News
GBP/USD bounces back toward 1.2700 ahead of US data, Powell

GBP/USD bounces back toward 1.2700 ahead of US data, Powell

GBP/USD picks up fresh bids and reverts toward 1.2700 in European trading on Wednesday. The pair reverses dovish BoE Governor Bailey's remarks-led drop as traders reposition ahead of US ADP Jobs data, ISM Services PMI data and Fed Chair Powell's speech. 

GBP/USD News
Gold price treads water near $2,640,  Fed Chair Powell's speech eyed

Gold price treads water near $2,640, Fed Chair Powell's speech eyed

Gold price attracts some sellers following an intraday uptick to the $2,650 supply zone in the early European session on Wednesday. The precious metal, however, remains confined in a familiar range held over the past week or so as traders seem reluctant to place aggressive directional bets ahead of Fed Chair Jerome Powell's speech. 

Gold News
ADP report expected to show US private sector job growth cooled in November

ADP report expected to show US private sector job growth cooled in November

The ADP Employment Change report is seen showing a deceleration of job creation in the US private sector in November. The ADP report could anticipate the more relevant Nonfarm Payrolls report on Friday.

Read more
The fall of Barnier’s government would be bad news for the French economy

The fall of Barnier’s government would be bad news for the French economy

This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures