EUR/USD: Scope for further decline - UOB

FX Strategists at UOB Group suggested the downtrend in EUR/USD could reach the 1.1160 level in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that EUR ‘could weaken further but oversold conditions suggest 1.1160 is likely out of reach’. However, EUR traded in a relatively quiet manner between 1.1196 and 1.1230 before closing little changed at 1.1206 (+0.08%). Momentum indicators are turning neutral and EUR is likely to consolidate and trade sideways. Expected range for today, 1.1190/1.1235.”

Next 1-3 weeks: “Our update from yesterday (25 Nov, spot at 1.1200) still stands. As highlighted, while conditions remain oversold, the breach of 1.1200 has opened up the way for EUR to weaken to 1.1160. All in, EUR is expected to stay weak as long as it does not move above 1.1270 (no change in ‘strong resistance’ level from yesterday). Looking ahead, the next support level of note below 1.1160 is at 1.1100.”