EUR/USD: Further decline now looks unlikely – UOB

Further consolidation could see EUR/USD trade within the 0.9900-1.0090 range in the next weeks, suggest FX Strategist at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the rebound in EUR has room to extend to 1.0030’. We added, ‘the next resistance at 1.0090 is unlikely to come into view’. Our expectations did not quite materialize as EUR rose to 1.0029, dropped to 0.9929 before rebounding to end the day little changed at 0.9994 (-0.05%). The underlying tone still appears to be a tad firm and the bias for today is tilted to the upside. However, any advance is unlikely to break the major resistance at 1.0090 (there is another resistance at 1.0055). Support is at 1.0000 followed by 0.9975.”

Next 1-3 weeks: “There is no change in our view from yesterday (08 Sep, spot at 0.9990). As highlighted, the recent downside risk has dissipated. The current movement is likely part of a consolidation phase and EUR is likely to trade between 0.9900 and 1.0090 for now.”