EUR/USD faces the next support at 1.1665 – UOB

In opinion of FX Strategists at UOB Group, EUR/USD risks a probable move to the 1.1665 level in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that EUR ‘could drift lower but a sustained decline below 1.1700 is unlikely’. We highlighted that resistance is at 1.1740 followed by 1.1755. EUR popped to a high of 1.1755 during NY session before dropping quickly to a low of 1.1682. Despite the rapid decline, downward momentum has not improved by much. While the risk remains on the downside, the major support at 1.1665 could be just out of reach for today (minor support at 1.1680). Resistance is at 1.1710 followed by 1.1725.”

Next 1-3 weeks: “We highlighted yesterday (22 Sep, spot at 1.1725) that ‘the weak phase in EUR is still intact but odds for a decline to the August’s low near 1.1665 are not high’. EUR plummeted to 1.1682 before closing at 1.1686 in NY (-0.32%). Downward momentum has improved, albeit not by all that much. In view of the improved momentum, a break of 1.1665 would not be surprising but it is left to be seen if EUR can maintain a foothold below this level. To look at it another way, the next major support at 1.1605 is unlikely to come into the picture this time round. Overall, the weak phase that started about 2 weeks ago (see annotations in the chart below) is deemed intact as long as EUR does not move above 1.1755 (‘strong resistance’ level was at 1.1775 yesterday).”