EUR/USD risks further losses near term – UOB

In the opinion of Economist Lee Sue Ann at UOB Group and Markets Strategist Quek Ser Leang, EUR/USD risks further decline in the next few weeks.

Key Quotes

24-hour view: “We expected EUR to ‘dip below 0.9840’ yesterday. However, it rose to 0.9953, dropped sharply and quickly to 0.9851 before ending the day little changed at 0.9874 (-0.09%). The underlying tone still appears to be on the soft side and we continue to see room for EUR to dip below 0.9840. In view of the lackluster downward momentum, the major support at 0.9800 is unlikely to come into view. The downside bias is intact as long as EUR does not move above 0.9925 (minor resistance is at 0.9900).”

Next 1-3 weeks: “Our update from yesterday (01 Nov, spot at 0.9885) still stands. As highlighted, downward momentum is showing tentative signs of building and the pullback from last week’s high of 1.0093 could extend. At this stage, it is premature to expect a sustained decline below 0.9800. On the upside, a break of 1.0000 (no change in ‘strong resistance’ level from yesterday) would indicate that the build-up of downward momentum has fizzled out.”