EUR/USD: diminishing odds for a test of 1.0965 – UOB

A potential move to the 1.0965 level in EUR/USD seems to have lost some traction as of late, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR dipped briefly to 1.0979 last Friday before rebounding quickly to close little changed at 1.1015 (+0.07%). The 1.0979 low is viewed as an interim short-term bottom and EUR is likely to trade sideways above this level. Expected range for today, 1.1000/1.1040”.

Next 1-3 weeks: “We expected EUR to ‘trade with a downward bias towards 1.0965’ since last Tuesday (26 Nov, spot at 1.1015). Since then, EUR has traded on a soft note. Last Friday, it dropped to a 7-week low of 1.0979 before rebounding quickly. Downward pressure is beginning to wane and the prospect for EUR to move to 1.0965 has diminished. That said, only a move above 1.1055 (no change in ‘strong resistance’ level) would indicate that the current downward pressure has eased”.