EUR/USD sees chances of a test of 1.1660 – UOB

The pair could extend its pullback to the 1.1660 region in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that “another dip towards 1.1720/25 is not ruled out but a clear break below 1.1700 seems unlikely”. EUR touched a low of 1.1715 before rebounding quickly. While downward momentum has eased, it is too early to expect a sustained recovery. EUR is more likely to consolidate its loss and trade sideways at these lower levels. Expected range for today; 1.1720/1.1790”.

Next 1-3 weeks: “While we highlighted yesterday that the “risk of a deeper pull-back has increased considerably”, the rapid pace of the decline was not exactly expected. The outlook for EUR is still clearly negative and further weakness towards the August’s low of 1.1660 would not be surprising. Overall, EUR is expected to continue to stay under pressure in the coming days and only a move back above 1.1880 would indicate that the current weakness has stabilized”.