FX Strategists at UOB Group noted EUR/USD could weaken to the 1.1465 level if breaches 1.1525 in the near term.
Key Quotes
24-hour view: “The sharp rebound in EUR to 1.1609 came as a surprise (we were expecting EUR to test the support at 1.1525). The rebound appears to be running ahead of itself and EUR is unlikely to advance much further. For today, EUR is more likely to trade between 1.1570 and 1.1630.”
Next 1-3 weeks: “Yesterday (01 Nov), we highlighted that if EUR closes below the solid support at 1.1525, it is likely to weaken further to 1.1465. We added, ‘the chance for EUR to close below 1.1525 is quite high and would increase over these few days unless EUR moves above the ‘strong resistance’ level (currently at 1.1645)’. There is no change in our view for now even though after the sharp rebound to 1.1609 during NY session, the odds for EUR to close below 1.1525 have diminished. Looking ahead, a break of the ‘strong resistance’ at 1.1645 would indicate that EUR could trade in an undecided manner and within a broad range for a period of time.”
