In the opinion of Markets Strategist Quek Ser Leang and Economist Lee Sue Ann at UOB Group, EUR/USD is now expected to navigate within the 0.9670-0.9860 range in the next few weeks.

Key Quotes

24-hour view: “The sharp drop in EUR to a low of 0.9755 came as a surprise (we were expecting EUR to edge higher). The rapid decline appears to have room to extend even though a break of 0.9715 appears unlikely. The major support at 0.9670 is not expected to come into view. Resistance is at 0.9790, followed by 0.9830.”

Next 1-3 weeks: “Our view from two days ago (18 Oct, spot at 0.9845) where ‘the risk of a clear break above 0.9900 is increasing’ was invalidated as EUR dropped below our ‘strong support’ level of 0.9770 yesterday. The price actions suggest EUR remains in a broad consolidation range and is likely to trade between 0.9670 and 0.9860 for the time being.”