Euro: Downside bias toward 1.1400 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a negative stance on EUR/USD after the pair closed at 1.1447. They see scope for further Euro (EUR) weakness, with intraday support at 1.1415 and a key level at 1.1400, though they doubt a sustained break lower.
UOB analysts Quek Ser Leang and Lee Sue Ann maintain a bearish outlook on EUR/USD after it closed at 1.1447. They foresee further Euro weakness, with support around 1.1415 and a key support level at 1.1400, though they are doubtful of a sustained decline. Over a one to three month period, moving averages suggest growing downside momentum with 1.1400 as the next daily support.
On the 24-hour view, EUR surged to 1.1495 two days prior before falling back to close at 1.1464. Earlier, it was noted that "there has been a slight increase in downward momentum" and EUR was expected to "edge lower." The anticipated dip surpassed expectations as EUR plunged to 1.1428. Though EUR might continue to slide today, without a clear surge in downward momentum, any decline is unlikely to reach 1.1400, as there is minor support at 1.1415.
Resistance is at 1.1460, followed by 1.1475. Since early last week, UOB has been holding a negative view on EUR. In their latest report from September 17th (spot at 1.1470), they stated that EUR "could continue to decline to 1.1435, with potential extension to 1.1400." After trading in a range for a few days, EUR dropped and broke below 1.1435 yesterday, reaching a low of 1.1428.
Even though it broke below 1.1435, downward momentum has not increased substantially, but as long as EUR stays below 1.1490 (previously a strong resistance level at 1.1520), there is a chance for EUR to test 1.1400. Considering current momentum, the likelihood of a continued decline below this level is low.
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