EUR/USD remains weak and targets the sub-1.0000 area – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted EUR/USD could drop to 0.9960 and 0.9920 in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that EUR ‘could break the critical support at 1.0000 but may not be able to maintain a foothold below this level’. EUR subsequently dipped to 0.9998 before rebounding to close little changed at 1.0036 (-0.03%). Downward pressure appears to have eased and EUR is likely to trade sideways for today, expected to be within a range of 1.0000/1.0070.”

Next 1-3 weeks: “We highlighted yesterday (12 Jul, spot at 1.0045) that solid downward momentum suggests a break of 1.0000 would not be surprising. We indicated that the next levels to focus on are at 0.9960 and 0.9920. EUR subsequently dipped to 0.9998 before rebounding. Despite the rebound, EUR is still weak and the next levels to monitor are at 0.9960 and 0.9920. Overall, only a break of 1.0150 (‘strong resistance’ level was at 1.0180 yesterday) would indicate that the weakness in EUR that started about two weeks ago has stabilized.”