Expected to fall – UOB Group

Euro (EUR) is expected to fall; it remains to be seen whether it can break the major support at 1.0900. In the long term, the outlook for the EUR remains negative; The next level to watch is 1.0900, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

The next level to watch is 1.0900

24 HOURS: “We expected the EUR to trade in a sideways range of 1.0950/1.1000 yesterday. However, it fell as low as 1.0936, closing at 1.0939 (-0.37%). There has been a slight increase in momentum and the EUR is likely to continue falling today. That said, whether it has enough momentum to break the major support at 1.0900 remains to be seen. Resistance is at 1.0960; a break of 1.0980 would mean that the current slight downward pressure is gone.”

WEEKS 1-3: “Our most recent narrative was from Monday (Oct 07, spot at 1.0970) where “further euro weakness looks likely”. I pointed out that “the next two support levels to monitor are 1.0935 and 1.0900″. Yesterday (Wednesday), EUR fell to a low of 1.0936. Although there has been no significant increase in momentum, the outlook for the EUR remains negative. The next level to watch is at 1.0900. Note that below this level lies a significant support zone between 1.0860 and 1.0885. On the other hand, a break of 1.1010 (previous ‘strong resistance’ level at 1.1045) would mean that the EUR weakness from mid-last week (see chart annotations below) has come to an end.”