In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, EUR/USD could slip back to the 1.0150 zone in the next few weeks.
24-hour view: “We expected EUR to weaken yesterday but we were of the view that ‘any decline is unlikely to break the support at 1.0280’. We indicated, ‘the next support is at 1.0240’. The decline exceeded our expectations as EUR cracked both 1.0280 and 1.0240 as it plummeted to a low of 1.0221. While approaching oversold, there is scope for EUR to weaken further to 1.0205. The major support at 1.0150 is unlikely to come under threat today. On the upside, a break of 1.0285 (minor resistance is at 1.0260) would indicate that the weakness in EUR has stabilized.”
Next 1-3 weeks: “In our latest narrative from last Friday (18 Nov, spot at 1.0360), we indicated that EUR has to break and remain above 1.0415 soon or the chance of it rising to 1.0480 will decrease quickly. Yesterday (21 Nov), EUR plummeted to a low of 1.0221. The break of our ‘strong support’ at 1.0280 indicates that EUR is not strengthening further. We view the current price movement as a pullback that could extend to 1.0150. Only a breach of the ‘strong resistance’ level at 1.0325 would indicate that downside bias has eased.”