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

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

The levels to monitor are 1.0935 and 1.0900

24 HOUR VIEW: “Following the EUR’s sharp decline last Friday, I indicated yesterday that “provided 1.1015 is not breached, EUR weakness could extend to 1.0935 before could wait for stabilization”. Our view was not proven as the EUR traded sideways between 1.0954 and 1.0986, closing little changed at 1.0974 (-0.02%). There is no increase in bearish or bullish momentum and the EUR is likely to continue trading sideways. Estimated range for today: 1.0950/1.1000.”

1-3 WEEKS: “Our update from yesterday (07 October 1.0970) is still valid. As pointed out, after last Friday’s sharp decline, further weakness in the euro seems likely. The next two support levels to monitor are 1.0935 and 1.0900. If the EUR breaks above 1.1045 (the ‘strong resistance’ level was at 1.1060 yesterday), it would mean that the EUR’s weakness from the middle of last week is over.”