According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further downside could drag EUR/USD to the 0.9755 level in the next few weeks.

Key Quotes

24-hour view: “EUR spiked to a high of 0.9975 before crashing to end the day on a weak note at 0.9817 (-0.58%). The sharp and swift drop has gathered momentum and EUR is likely to drop below the support at 0.9800. In view of the oversold conditions, a break of the next support at 0.9755 is unlikely. The downward pressure is intact as long as EUR does not move above 0.9880 (minor resistance is at 0.9850).”

Next 1-3 weeks: “Our latest narrative was from two days ago (01 Nov, spot at 0.9885) where ‘the pullback in EUR could extend but a sustained decline below 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 could extend to the next major support at 0.9755. Overall, only a break of 0.9920 (‘strong resistance’ level was at 1.0000 yesterday) would indicate that EUR is not ready to decline further. Looking ahead, if EUR breaks below 0.9755, the next level to focus on is at 0.9705.”