Euro downtrend points towards 1.1095 support against US Dollar – UOB

A fall to 1.1121 took EUR/USD below 1.1135 sooner than expected, reinforcing the pair’s downside bias, according to UOB’s Quek Ser Leang and Lee Sue Ann. With intraday downward momentum strong but stretched, they see limited scope for a decisive break below 1.1095. Support stands at 1.1110, while resistance lies at 1.1145/1.1160. Their 1–3 weeks outlook continues to favour a move towards 1.1095, with strong resistance now at 1.1190.

Euro Faces Further Pressure as Oversold Conditions Limit Downside Near Lows

"24-HOUR VIEW: EUR declined to a low of 1.1172 two days ago. Yesterday, when EUR was at 1.1175, we stated that “given the increasing downward momentum, the bias for EUR is tilted to the downside toward 1.1150.” We pointed out that “the next support at 1.1135 is likely out of reach for now.” Our directional call was correct, but we underestimated the downward momentum, as EUR declined to a low of 1.1121. Downward momentum remains strong, but given the oversold conditions, EUR may not be able to break clearly below 1.1095 today. Note that there is another support level near 1.1110. Resistance is at 1.1145, followed by 1.1160."

"1-3 WEEKS VIEW: We turned negative on EUR yesterday (27 Oct, spot at 1.1175), indicating that “there has been a tentative buildup in downward momentum, and from here, EUR could edge lower, potentially testing 1.1135.” We added, “to sustain the downward momentum, EUR must hold below the ‘strong resistance’ level, now at 1.1220.” We did not expect EUR to breach 1.1135 so quickly, as it dropped to a low of 1.1121. While short-term conditions are oversold, EUR could continue to decline toward 1.1095. On the upside, the ‘strong resistance’ level is now at 1.1190."

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