EUR/USD remains under pressure and could extend the move lower to yearly lows in the 1.1020/30 band, according to FX Strategists at UOB Group.

24-hour view: “EUR traded in a quiet manner yesterday as it registered a tight range of 28 pips (the 1.1079/1.1107 range was narrower than our expected 1.1075/1.1125). Indicators are mostly ‘flat’ and the current consolidation phase could persist for today. In other words, EUR is expected to continue to trade sideways, likely between 1.1070 and 1.1115”.

Next 1-3 weeks: “EUR dipped briefly yesterday but rebounded after testing Monday’s (19 Aug) low of 1.1065 (overnight low of 1.1064). The price action offers no fresh clues and for now, we continue to hold the view that there is scope for EUR to retest the early August low of 1.1025. As indicated on Monday (19 Aug, spot at 1.1095), it is unclear at this stage whether there is enough momentum to break the crucial 1.1000 level (even though after the lackluster price action over the past two days, the prospect for a break of this level is not high). That said, EUR is expected to stay under pressure unless it can move above 1.1160 (no change in ‘key resistance’ level)”.