1.1095 support in focus as Euro downtrend targets further losses against US Dollar – UOB

EUR/USD reached 1.1121. UOB’s Quek Ser Leang and Lee Sue Ann say the pair’s downside bias has strengthened following a faster-than-expected break below 1.1135. For intraday trading, downward momentum remains strong but stretched, making a decisive break below 1.1095 less likely. Support stands at 1.1110, with resistance at 1.1145/1.1160. Their 1–3 week outlook still points towards 1.1095, while strong resistance has shifted to 1.1190.

1.1121 low: Euro under pressure as oversold conditions persist

"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."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)