EUR/USD still faces downside risks – UOB

FX Strategists at UOB Group believe that EUR/USD could still head towards the 1.0965 level in the next weeks.

• "24-hour view: Instead of ‘trading sideways’, EUR dipped to an overnight 1.0990 before recovering slightly. Downward momentum has picked up, albeit not by much. From here, EUR could dip below 1.0990 but the strong support at 1.0965 is likely out of reach for today. Resistance is at 1.1025 but only a move above 1.1040 would indicate the current mild downward pressure has eased.
• Next 1-3 weeks: There is not much to add to the update from Tuesday (26 Nov, spot at 1.1015) as EUR dipped to 1.1090 yesterday (27 Nov) before recovering slightly. The price action is in line with our view that EUR is ‘expected to trade with a downward bias towards 1.0965’. As highlighted, the month-to-date low at 1.10987 is expected to provide decent support. Downward momentum has improved modestly and 1.0965 could come into the picture within the next few days. On the upside, a breach of 1.1055 (‘strong resistance’ level previously at 1.1065) would indicate the current downward pressure has eased."