In light of FX Strategists at UOB Group, EUR/USD is unlikely to drop to the 1.1600 region in the next weeks.
24-hour view: “Yesterday, EUR dipped to a low of 1.1625 before rebounding to close slightly higher at 1.1672 (+0.11%). The price actions were in line with our expectations wherein EUR has room to ‘dip below the major support at 1.1630 but the next support at 1.1600 is unlikely to come into the picture’. The rebound from the low appears to have scope to extend higher but any advance is viewed as part of a 1.1640/1.1710 range. In other words, a sustained rise above 1.1710 is not expected.”
Next 1-3 weeks: “There is not much to add to our update from 2 days ago (Sep 23, spot at 1.1710). As highlighted, the risk for EUR is still on the downside and ‘the next support is at 1.1630 followed by 1.1600’. EUR dropped to a low of 1.1625 yesterday (24 Sep) and shorter-term downward momentum appears to have slowed somewhat. In other words, while the outlook for EUR still remains weak, the next support at 1.1600 may not come into the picture so soon. On the upside, the ‘strong resistance’ level remains unchanged at 1.1760 for now.”
Credit: FX Street