United Overseas Bank’s (UOB) Quek Ser Leang maintains a bearish stance on EUR/USD after recent declines, expecting the pair to trade intraday between 1.1460 and 1.1500 as momentum eases. Over the coming weeks, the Euro (EUR) is seen potentially extending losses toward 1.1435 and 1.1400, with strong resistance at 1.1545 and EMAs signalling further downside.

Euro-Dollar bias stays to downside

“24-HOUR VIEW: Two days ago, EUR plunged to a low of 1.1460. Yesterday, when EUR was at 1.1470, we indicated that “while further EUR weakness is not ruled out, deeply oversold conditions suggest any decline could stay within a 1.1435/1.1505 range.” EUR then edged to a low of 1.1450, rebounded to 1.1497 before closing little changed at 1.1474 (+0.09%). Downward momentum has eased somewhat, and today, we expect EUR to trade in a range, most likely between 1.1460 and 1.1500.”

“1-3 WEEKS VIEW: Reiterating our negative view from one week ago, we indicated yesterday (17 Sep, spot at 1.1470) that EUR “could continue to decline to 1.1435, with potential extension to 1.1400.” We will continue to hold the same view as long as the ‘strong resistance’ at 1.1545 (no change in level) is not breached. “