EUR/USD has scope to extend to 1.1570 before a pause can be expected – UOB Group
Euro (EUR) has scope to extend to 1.1570 before a pause can be expected. In the longer run, weakness from a week ago has stabilized; EUR is likely to trade in a range of 1.1485/1.1610 for the time being, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Weakness from a week ago has stabilized
24-HOUR VIEW: "Yesterday, we indicated that 'downward momentum is tentatively slowing, and this, combined with oversold conditions suggests consolidation today, likely between 1.1475 and 1.1525'. Our assessment was incorrect, as instead of consolidating, EUR rose to a high of 1.1552. The advance has scope to extend to 1.1570 before a pause can be expected. The major resistance at 1.1605 is not expected to come under threat. On the downside, support levels are at 1.1530 and 1.1510."
1-3 WEEKS VIEW: "In our most recent narrative from two days ago (05 Nov, spot at 1.1485), we indicated that EUR 'is expected to weaken further, and the next level to watch is 1.1450'. After EUR subsequently dipped to a low of 1.1468 and then recovered, we highlighted yesterday that 'downward momentum has slowed somewhat, but as long as EUR holds below 1.1555 (‘strong resistance’ level), there is still a chance for EUR to decline to 1.1450'. We did not expect EUR to recover further to a high of 1.1552. Although our ‘strong resistance’ level has not been breached yet, downward momentum has faded. In other words, the EUR’s weakness from a week ago has stabilized, and we expect EUR to trade in a range of 1.1485/1.1610 for the time being."
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FXStreet Insights Team
FXStreet
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