In the opinion of the currency strategists at UOB Group, the EUR/USD faces further losses if 1.1770 clears in the short term.
24-hour perspective: “We highlighted yesterday that there was room for the EUR to weaken to 1.1820. We added that the large support at 1.1795 was not expected to enter the picture. Subsequent weakness exceeded our expectations as the euro fell to a few pips from 1.1795 ( 1.1800 low) .While the downside momentum has not improved as much, the bearish risk remains intact. From here, the EUR could fall below 1.1795, but it is unlikely that it will be able to hold a support point below this level. The next support at 1.1770 is unlikely to be threatened. Resistance is at 1.1835 followed by 1.1860. “
Next 1-3 weeks: “Yesterday (Sep 08, pair at 1.1840), we highlighted that the recent strength of the EUR has run its course and we expected it to consolidate and trade between 1.1795 and 1.1895. There is no change in our opinion even though we do not fully anticipate how quickly the euro is approaching the bottom of the expected range at 1.1795 (1.1800 daily low). The downside momentum is showing tentative signs of rebounding, but only a daily close below 1.1770 would signal the start of a deeper pullback. The outlook for the euro to close below 1.1770 is not high for now, but would increase unless the currency moves above 1.1860 in these two days. “