EUR/USD: diminishing bets for a move below 1.0970 – UOB

EUR/USD remains under pressure, although a breach below the 1.0970 region seems to be losing some traction, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for EUR yesterday was “it could try to move below 1.1000 again but the next support at 1.0970 is not expected to come into the picture”. EUR subsequently dipped to a low of 1.0993 before recovering to end the day marginally lower at 1.1006 (-0.01%). The quiet price action offers no fresh clues and EUR could remain sidelined at these lower levels. Expected range for today, 1.0995/1.1035”.

Next 1-3 weeks: “EUR finally moved below the 1.1000 level that we first indicated one week ago (06 Nov, spot 1.1075) as it dipped to 1.0993 yesterday. Despite making fresh low, downward momentum remains lackluster. As highlighted yesterday (13 Nov, spot at 1.1010), while EUR is still under pressure, the prospect for a sustained decline below the next support at 1.0970 is not high. However, only a move above 1.1065 (no change in ‘strong resistance’ level for now) would indicate that the current downward pressure has eased”.