EUR/USD: Likely to trade between 1.1475 and 1.1525 – UOB Group

FXStreet Insights Team FXStreet

Tentatively slowing downward momentum and oversold conditions suggest consolidation in EUR, likely between 1.1475 and 1.1525. In the longer run, EUR is expected to weaken further; the next level to watch is 1.1450, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is expected to weaken further

24-HOUR VIEW: "Two days ago, we expected EUR to weaken. After it fell more than expected to a low of 1.1472, we highlighted yesterday that 'further declines are not ruled out'. However, we pointed out that 'clear positive divergence, suggests EUR may not be able to reach 1.1450 today'. The subsequent price movements did not turn out quite as expected, with EUR trading within a relatively tight range between 1.1468 and 1.1497. Downward momentum is tentatively slowing, and this, combined with oversold conditions suggests consolidation today, likely between 1.1475 and 1.1525."

1-3 WEEKS VIEW: "We have held a negative EUR stance since late last week (see annotations in the chart below). Yesterday (05 Nov, spot at 1.1485), we indicated that EUR 'is expected to weaken further, and the next level to watch is 1.1450'. EUR subsequently dipped to a fresh low of 1.1468 before closing slightly higher at 1.1491 (+0.08%), snapping a five-day losing streak. Downward momentum has slowed somewhat, but as long as EUR holds below 1.1555 (no change in ‘strong resistance’ level from yesterday), there is still a chance for EUR to decline to 1.1450."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.