Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group suggest EUR/USD is now seen trading within the 0.9630-0.9900 range in the next few weeks.

Key Quotes

24-hour view: “EUR plunged to a low of 0.9631 before staging a remarkable rebound to a high of 0.9805 in NY trade (closed at 0.9773, +0.71%). The outsized rebound could extend to 0.9835 before a pullback is likely. The major resistance at 0.9900 is not expected to come into view. Support is at 0.9740, followed by 0.9700.”

Next 1-3 weeks: “Yesterday (13 Oct, spot at 0.9715), we indicated EUR is under mild pressure. We highlighted that EUR has to break below 0.9630 before a sustained decline can be expected. EUR dropped to 0.9631 in early NY trade before rebounding strongly to a high of 0.9805. While our ‘strong resistance’ level at 0.9820 is not breached, the mild downward pressure has dissipated. We view the current price movement as part of a broad consolidation range and expect EUR to trade between 0.9630 and 0.9900 for the time being.”