EUR / USD risks a deeper pullback below 1.1680 – UOB

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According to currency strategists at UOB Group, the pair EUR / USD could return to the 1.1630 level after a break of 1.1680 in the short term.

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24 hour view: “Our expectations that the EUR / USD ‘would trade between 1.1700 and 1.1745’ yesterday were incorrect, as it fell to 1.1683 before rebounding to close at 1.1694 (-0.17%). The downside momentum has improved, although not greatly. From here, there is room for the EUR / USD to dip below 1.1680, but it may not be able to stay below this level (next support is at 1.1662). On the upside, a break of 1.1725 (minor resistance is at 1.1710) would indicate that the current mild pressure has eased. “

Next 1-3 weeks: “Last Friday (September 24, EUR / USD at 13,745), we highlighted that the recent weak phase of the EUR / USD has ended and we expected the EUR / USD to trade between 1.1700 and 1.1800. The EUR / USD fell below 1. 1700 yesterday (September 27) and dipped to 1.1683. The downside momentum shows tentative signs of construction and a daily close below 1.1680 would indicate that the EUR / USD could break the August low of 1.1662 and head towards 1.1630. The prospect of EUR / USD closing below 1.1680 is quite high and would rise further as long as EUR / USD does not move above 1.1745 (‘strong resistance level’) in these few days.

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