EUR/USD remains weak and targets 0.9960/20 – UOB

EUR/USD could slip back below the parity level and visit 0.9960 ahead of 0.9920 in the next weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways within a range of 1.0000/1.0070’ yesterday. We did expect the spike in volatility as EUR plunged briefly to 0.9997, snapped to a high of 1.0122 before easing off to close at 1.0060 (+0.24%). Further choppy price actions are not ruled out, likely between 1.0000 and 1.0100.”

Next 1-3 weeks: “Our update from yesterday (13 Jul, spot at 1.0035) still stands. As highlighted, EUR is still weak and the next levels to monitor are at 0.9960 and 0.9920. That said, after the sharp bounce from just below the parity level during NY session, 0.9960 may not come into the picture so soon. Overall, only a break of 1.0150 (no change in ‘strong resistance’ level from yesterday) would indicate that the weakness in EUR that started two weeks ago has stabilized.”