EUR/USD: Upside pressure alleviated below 1.0640 – UOB

UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia see the upside momentum in EUR/USD losing traction below 1.0640.

Key Quotes

24-hour view: We expected EUR to consolidate in a range of 1.0690/1.0750 yesterday. However, it dipped to a low of 1.0662 before settling at 1.0699 (-0.15%). The decline lacks momentum, and EUR is unlikely to weaken further. Today, EUR is more likely to trade sideways, probably between 1.0665 and 1.0725. 

Next 1-3 weeks: Our latest narrative was from two days ago (06 Nov, spot at 1.0730), wherein the impulsive rally from last Friday is likely to extend to 1.0770, as high as 1.0800.  Since then, EUR has not been able to make further headways on the upside. While upward momentum has waned somewhat, only a breach of 1.0640 (no change in ‘strong support’ level from yesterday) would indicate that 1.0770 is out of reach