In opinion of FX Strategists at UOB Group, the downward momentum in EUR/USD seems to be losing some traction.

Key Quotes

24-hour view: “We highlighted yesterday that EUR ‘could edge higher but any advance is unlikely to break the resistance at 1.1605’. EUR subsequently rose to 1.1587 before easing off. The underlying tone has softened somewhat and EUR could drift lower. While EUR could dip below last week’s low at 1.1527, the major support at 1.1500 is not expected to come into the picture. Resistance is at 1.1565 followed by 1.1585.”

Next 1-3 weeks: “Our update from yesterday (11 Oct, spot at 1.1570) still stands. As highlighted, downward momentum is beginning to wane and the odds for EUR to move to 1.1500 have diminished. A break of 1.1605 (no change in ‘strong resistance’ level) would indicate that the weak phase that started about 2 weeks ago has run its course.”

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