Forex Strategists UOB Group, Quek Ser Leang, and Peter Chia, suggest that the EUR/USD could continue to visit the 0.9500 area in the coming weeks.
24 hour outlook: “Yesterday we highlighted that the bias for the EUR was to the downside, but a clear break below 0.9530 was unlikely. Although our view was not wrong, as the euro subsequently fell to as low as 0.9534, we did not expect the liftoff from the low that sent the euro higher to a high of 0.9750.The strong and rapid rally seems overdone and the euro is unlikely to advance further.For today, we expect the euro to trade sideways between 0.9620 and 0.9750“.
Next 1-3 weeks: “We have been in a negative EUR for over two weeks. In our last account on Monday (Sep 26, pair at 0.9630), we held the view that the Euro could weaken further, possibly to 0.9500. Yesterday (Sep 28) , the Euro fell as low as 0.9534 before jumping out to test our strong resistance level at 0.9750 As the ‘strong resistance’ has not clearly been broken, there is still a chance (albeit a slim one) that the Euro could drop to 0.9500. future, a break of 0.9750 would indicate that the euro could trade sideways within a wide range for a while.”
Source: Fx Street
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