Euro leans lower towards support levels against US Dollar – UOB

A decline to 1.1172 took EUR/USD out of its recent range, reinforcing the short-term downside bias, according to United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann. The pair is expected to edge towards 1.1150 intraday, although a further fall to 1.1135 is considered less likely. Over the next 1–3 weeks, downward momentum is showing tentative signs of strengthening, leaving scope for tests of 1.1135, with resistance limiting gains near 1.1220.

Downward momentum shows tentative signs of strengthening

"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 created with the help of an Artificial Intelligence tool and reviewed by an editor. Find out more.)