EUR/USD: A close below 1.1770 loses traction – UOB

According to FX Strategists at UOB Group, a move below 1.1770 in EUR/USD seems to be losing momentum for the time being.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the rapid decline from the high has scope to extend lower’. Our expectations did not materialize as EUR traded in a quiet manner between 1.1797 and 1.1832. Momentum indicators are mostly neutral and EUR is likely to trade sideways for today, expected to be within a 1.1790/1.1835 range.”

Next 1-3 weeks: “Two days ago (14 Sep, spot at 1.1810), we highlighted that as long as EUR stays below 1.1850, there is scope for EUR to close below 1.1770. There is no change in our view for now even though the quiet price actions the past couple of days have resulted in a loss in downward momentum. In other words, the prospect for EUR to close below 1.1770 is beginning to diminish. In order to revive the flagging momentum, EUR has to move and stay below 1.1790 within these 1 to 2 days or a break of 1.1850 would not be surprising (and would indicate that EUR could trade sideways for a period of time).”