To trade in a sideways range of 1.0950/1.1000 – UOB Group

The Euro (EUR) is likely to trade in a sideways range of 1.0950/1.1000. In the longer run, further EUR weakness appears likely; the next two support levels to monitor are 1.0935 and 1.0900, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Levels to monitor are 1.0935 and 1.0900

24-HOUR VIEW: “After EUR fell sharply last Friday, we indicated yesterday that ‘provided that 1.1015 is not breached, the weakness in EUR could extend to 1.0935 before stabilisation can be expected.’ Our view did not turn out, as EUR traded sideways between 1.0954 and 1.0986, closing little changed at 1.0974 (-0.02%). There is no increase in either downward or upward momentum, and EUR is likely to continue to trade sideways. Expected range for today: 1.0950/1.1000.”

1-3 WEEKS VIEW: “Our update from yesterday (07 Oct, spot at 1.0970) still stands. As highlighted, after the sharp drop last Friday, further EUR weakness appears likely. The next two support levels to monitor are 1.0935 and 1.0900. Should EUR break above 1.1045 (‘strong resistance’ level was at 1.1060 yesterday), it would mean that the EUR weakness from the middle of last week has ended.”