EUR/USD: Downward pressure alleviated above 1.0545 – UOB

The selling pressure in EUR/USD appears mitigated above 1.0545, note Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: Yesterday, we held the view that EUR could test the support at 1.0430 before levelling off. Our view was incorrect. After dipping to 1.0450, EUR rebounded to a high of 1.0532. The price action is likely part of a sideways trading phase. Today, we expect EUR to trade between 1.0470 and 1.0535. 

Next 1-3 weeks: Two days ago (03 Oct, spot at 1.0480), we highlighted that EUR “is still in a bearish phase, and it is likely to weaken to 1.0430, potentially below 1.0400.” EUR dropped to 1.0547 and has since rebounded. Downward momentum is beginning to slow, and if EUR breaks above 1.0545 (no change in ‘strong resistance’ level from yesterday), it would mean that 1.0530 is not coming into view this time around.