Euro: Support levels in focus amid downside bias against US Dollar – UOB

EUR/USD slipped to 1.1172. United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that the break from its recent range reinforces the pair’s short-term downside bias. They see an intraday drift towards 1.1150, with the lower target of 1.1135 less likely to be reached. Over a 1–3 week horizon, tentative downward momentum could bring tests of 1.1135, while resistance stands near 1.1220.

1.1135 in Focus as Bearish Momentum Tentatively Builds

"24-HOUR VIEW: We indicated yesterday that EUR “could trade between 1.1185 and 1.1230.” The subsequent price movements did not unfold as expected. EUR rose to 1.1226 before declining to a low of 1.1172. Given the increasing downward momentum, the bias for EUR is tilted to the downside toward 1.1150. The next support at 1.1135 is likely out of reach for now. Resistance is at 1.1190, followed by 1.1205."

"1-3 WEEKS VIEW: We have been expecting EUR to trade in a range since the middle of the month. In our most recent narrative from last Thursday (22 Oct, spot at 1.1230), we stated that “the price movements still appear to be part of a range-trading phase, but a narrower 1.1170/1.1270 range is likely sufficient to contain EUR for now.” Yesterday, EUR fell to a low of 1.1172. There has been a tentative buildup in downward momentum, and from here, EUR could edge lower, potentially testing 1.1135. To sustain the downward momentum, EUR must hold below the ‘strong resistance’ level, now at 1.1220."

(This article was produced with assistance from an Artificial Intelligence tool and checked by an editor. Learn more.)