EUR/USD: Scope to test 1.1690 before stabilisation is likely – UOB Group

Pullback in Euro (EUR) has scope to test 1.1690 before stabilisation is likely; major support at 1.1650 is not expected to come under threat. In the longer run, EUR could rise but any advance is likely part of a higher range of 1.1650/1.1790, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Any advance is likely part of a higher range of 1.1650/1.1790

24-HOUR VIEW: "EUR rose to a high of 1.1765 two days ago. Yesterday, when EUR was at 1.1760, we highlighted that 'despite the advance, upward momentum has only increased slightly.' We also highlighted that EUR 'could edge higher, but based on the current momentum, it is unlikely to be able to break clearly above 1.1790.' While we were not wrong, as EUR rose to a high of 1.1779, we did not anticipate the subsequent sharp pullback that reached a low of 1.1702. The pullback has scope to test 1.1690 before stabilisation is likely. We do not expect the major support at 1.1650 to come under threat. On the upside, resistance levels are at 1.1730 and 1.1760."

1-3 WEEKS VIEW: "Two days ago, 08 September, when EUR was at 1.1715, we highlighted that EUR 'could rise but any advance is likely part of a higher range of 1.1650/1.1790.' Yesterday, EUR rose to 1.1779 and then pulled back sharply. The price action did not result in any increase in upward momentum, and we continue to expect EUR to trade in range of 1.1650/1.1790."