According to the currency strategists of UOB Group, the EUR / USD stance remains negative, but at the moment a move towards 1.1580 is not favored.
24 hour perspective: “Our expectation for the EUR to fall below main support at 1.1610 did not materialize as it traded between 1.1621 and 1.1656 before closing little changed at 1.1640 (-0.06%). While the momentum indicators are mostly neutral now, there is still the chance for euro to test 1.1610 support first before a stronger recovery can be expected. For today, the next support at 1.1580 is not expected to enter the picture. Resistance is at 1.1670 followed by 1.1695 ”.
Next 1-3 weeks: “In our latest update last Thursday (October 29, stop 1.1745), we indicated that ‘an improvement in bearish momentum suggested that risk remained to the downside, but the EUR had to close below 1.1685 before a more sustained decline could be expected. We added that the next support was at 1.1610. Subsequently, the euro closed below 1.1685 and fell to a low of 1.1638 last Friday. From now on, a breakout of 1.1610 would not be surprising, but the next level at 1.1580 is solid support and may not be easy to break. All in all, the current negative phase is considered intact as long as the EUR does not move above 1.1745 (previously strong resistance level at 1.1835). ”
Credits: Forex Street
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