Based on Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, additional draw back may drag EUR/USD to the 0.9755 degree within the subsequent few weeks.
24-hour view: “EUR spiked to a excessive of 0.9975 earlier than crashing to finish the day on a weak notice at 0.9817 (-0.58%). The sharp and swift drop has gathered momentum and EUR is more likely to drop under the assist at 0.9800. In view of the oversold circumstances, a break of the following assist at 0.9755 is unlikely. The downward stress is undamaged so long as EUR doesn’t transfer above 0.9880 (minor resistance is at 0.9850).”
Subsequent 1-3 weeks: “Our newest narrative was from two days in the past (01 Nov, spot at 0.9885) the place ‘the pullback in EUR may lengthen however a sustained decline under 0.9800 is unlikely for now’. Yesterday, EUR dropped sharply and closed at 0.9817 (-0.58%). Downward momentum has improved and the decline in EUR may lengthen to the following main assist at 0.9755. General, solely a break of 0.9920 (‘sturdy resistance’ degree was at 1.0000 yesterday) would point out that EUR just isn’t prepared to say no additional. Wanting forward, if EUR breaks under 0.9755, the following degree to give attention to is at 0.9705.”