EUR/USD: Downside prospects lose traction – UOB

According to FX Strategists at UOB Group, the downside pressure in EUR/USD should mitigate above 1.0940.

Key Quotes

24-hour view: “EUR traded between 1.0758 and 1.0896 yesterday, narrower than our expected range of 1.0700/1.0900. The firm daily closing in NY (1.0880) suggests there is room for EUR to edge higher towards 1.0940. For today, the next resistance at 1.1000 is unlikely to come into the picture. Support is at 1.0830 but only a breach of 1.0770 would suggest the current mild upward pressure has eased.”

Next 1-3 weeks: “Downward momentum is beginning to wane and the sharp fall that started about 2 weeks ago is showing tentative signs of tiring. However, only a break of 1.0940 (‘strong resistance’ previously at 1.1000) would indicate that the weakness has stabilized. Until then, further fresh low is not ruled out but the prospect is beginning to dim.”