In the view of UOB Group currency strategists, the upward momentum in the EUR/USD it has declined and now stands at 1.1590.
24-hour perspective: “We highlighted yesterday that the bias for the EUR was to the upside, but any advance was unlikely to question the large resistance at 1.1680. The euro subsequently rose to 1.1667 before staging a surprisingly strong pullback (low of 1.1618 in the trading session. New York). Pullback from the high seems to have room to extend, but a breakout of the strong support at 1.1590 is unlikely (There is another support at 1.1605). On the upside, a breakout of 1.1650 would indicate that the downside pressure has eased (minor resistance is at 1.1635). “
Next 1-3 weeks: “Two days ago (Oct 20, pair at 1.1630), we highlighted that the EUR could consolidate for a couple of days first, but it was likely to head for the next major resistance at 1.1680 later. Yesterday (Oct 21) , the euro rose to 1.1667 before rapidly retreating, momentum to the upside has eased and a break of 1.1590 (unchanged from the strong support level) would indicate that 1.1680 is out of reach this time. To rejuvenate momentum, the EUR has to move and stay above 1.1650 within these 1-2 days or a break of 1.1590 would not be surprising..”