UOB Research discusses EUR/USD technical outlook and flags the importance of the 1.1090 level on the upside and the 1.0970 level on the downside.
"Risk of a sustained decline below 1.1000 has increased slightly but there is another strong support at 1.0970. EUR closed lower for the fifth straight day last Friday as it dropped to 1.1015 before closing at 1.1016. The price action is in line with our view from last Wednesday (06 Nov, spot 1.1075) wherein EUR is expected to “trade with a downside bias towards 1.1000”. After the relatively weak daily closing on Friday, the risk for a sustained decline below 1.1000 has increased slightly. However, there is another strong support at 1.0970 and only a clear break of this level would suggest EUR is ready to tackle 1.0930," UOB notes.
"All in, EUR is expected to stay under pressure unless it can move above 1.1090 (‘strong resistance’ level was at 1.1125 last Friday)," UOB adds.