EUR/USD: A drop below 0.9900 looks unlikely – UOB

In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, a sustained move sub-0.9900 in EUR/USD seems not favoured for the time being.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways within a range of 0.9965/1.0040’ last Friday. EUR subsequently dipped briefly to 0.9943, rebounded to 1.0036 before closing at 1.0015 (+0.16%). The underlying tone has improved slightly and we see room for EUR to edge higher today. However, any advance is unlikely to challenge the major resistance at 1.0070 (there is another resistance at 1.0050). Support can be found at 0.9995 and 0.9970.”

Next 1-3 weeks: “Our latest narrative from last Wednesday (14 Sep, spot at 0.9980) still stands. As highlighted, EUR is under pressure but at this stage, a sustained decline below the major support at 0.9900 appears unlikely. On the upside, a breach of 1.0070 (no change in ‘strong resistance’ level from last Friday) would indicate that the current downward pressure has eased.”