EUR/USD faces strong support at 1.0970 – UOB

Pablo Piovano FXStreet

In view of FX Strategists at UOB Group, EUR/USD is expected to grind lower in the near term although strong contention is seen in the 1.0970 region.

Key Quotes

24-hour view: “We highlighted last Friday that EUR is “expected to drift lower to 1.1025” and added, “the strong support at 1.1000 is likely out of reach”. EUR subsequently dropped to 1.1015 before ending the day on a soft note at 1.1016 (-0.30%). While oversold, the decline is not showing sign of stabilization just yet. That said, lackluster momentum suggests any weakness below the strong 1.1000 level is unlikely to be sustained (next support is at 1.0970). Resistance is at 1.1040 followed by 1.1065”.

Next 1-3 weeks: “EUR closed lower for the fifth straight day last Friday as it dropped to 1.1015 before closing at 1.1016. The price action is in line with our view from last Wednesday (06 Nov, spot 1.1075) wherein EUR is expected to “trade with a downside bias towards 1.1000”. After the relatively weak daily closing on Friday, the risk for a sustained decline below 1.1000 has increased slightly. However, there is another strong support at 1.0970 and only a clear break of this level would suggest EUR is ready to tackle 1.0930. All in, EUR is expected to stay under pressure unless it can move above 1.1090 (‘strong resistance’ level was at 1.1125 last Friday)”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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