Market Strategist Quek Ser Leang and Senior Currency Strategist Peter Chia of UOB Group see a move towards the 1.0920 zone less and less likely on the EUR/USD.
24 hour outlook: We saw the underlying tone slightly weaker yesterday, and expected the EUR to trade in a lower range of 1.0970/1.1030. However, it fell as low as 1.0950 before bouncing to end the day at 1.0982 (-0.10%). The Euro rallied in the early hours of Asian trade, but there is no clear momentum. The current price developments appear to be part of a consolidation. Today, we expect the Euro to trade sideways between 1.0970 and 1.1030.
Next 1-3 weeks: We maintain a negative opinion on the Euro since the middle of last week. Our last view dated back to Monday (July 31, pair at 1.1025) that bearish momentum had eased somewhat, but only a break of 1.1070 would indicate that the Euro is not weakening further.” Yesterday, the EUR fell to 1.0950 and then bounced.It has rallied strongly in early Asian trade today.The bearish momentum has further deteriorated and the chances of the Euro falling this time to the main support of 1.0920 are slim. However, only a break of 1.1070 would indicate that the current bearish pressure has faded.
Source: Fx Street
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