EUR/USD sticks to the bearish view – UOB

FX Strategists at UOB Group still see EUR/USD grinding lower to the 1.0965 level in the next weeks.

Key Quotes

24-hour view: “Expectation for EUR to “dip below 1.0990” did not materialize as it traded quietly between 1.0996 and 1.1018. The price action is viewed as on-going consolidation phase. In other words, EUR is likely to continue to trade sideways, expected to be between 1.0995/1.1025”.

Next 1-3 weeks: “There is not much to add to the update from Tuesday (26 Nov, spot at 1.1015) as EUR dipped to 1.1090 yesterday (27 Nov) before recovering slightly. The price action is in line with our view that EUR is ‘expected to trade with a downward bias towards 1.0965’. As highlighted, the month-to-date low at 1.10987 is expected to provide decent support. Downward momentum has improved modestly and 1.0965 could come into the picture within the next few days. On the upside, a breach of 1.1055 (‘strong resistance’ level previously at 1.1065) would indicate the current downward pressure has eased”.