UOB’s Quek Ser Leang and Lee Sue Ann keep a cautious stance on EUR/USD after the pair closed almost unchanged near 1.1543. They note slowing downside momentum intraday but still see room for a move toward 1.1520, while the broader 1–3 week view points to potential losses toward 1.1490 unless resistance at 1.1585 is breached, suggesting sustained downside pressure.

Momentum still favors mild downside

“24-HOUR VIEW: After EUR fell more than we expected on Monday, we highlighted yesterday that “there is a chance for EUR to drop to 1.1520 before a more sustained rebound can be expected.” We added, “the next support at 1.1490 is unlikely to come under threat.” While EUR fell as expected, it recovered from 1.1525 to close largely unchanged at 1.1543 (-0.03%). Downward momentum is starting to slow, but there is still a chance for EUR to decline toward 1.1520. A breach of this level is not ruled out, but based on the prevailing momentum, the major support at 1.1490 is still unlikely to come under threat. Resistance is at 1.1550, followed by 1.1565.”

“1-3 WEEKS VIEW: Our update from yesterday (15 Sep, spot at 1.1550) remains valid. As highlighted, “the sharp increase in momentum suggests EUR could decline toward 1.1490.” On the upside, a breach of the ‘strong resistance’ at 1.1585 (level was at 1.1600 yesterday) would indicate that the downward pressure from late last week is easing.”