EUR/USD: Any decline is likely limited to a test of 1.1280 – UOB Group

Euro (EUR) is under mild downward pressure against the US Dollar (USD) and is likely to edge lower; any decline is likely limited to a test of 1.1280. Current price movements are likely part of a consolidation phase between 1.1225 and 1.1410, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a consolidation phase

24-HOUR VIEW: "EUR traded between 1.1286 and 1.1364 yesterday, closing slightly higher by 0.17% at 1.1314. There has been a slight increase in downward momentum. Today, EUR is likely to edge lower, but barring a surge in momentum, any decline is likely limited to a test of 1.1280. The major support at 1.1225 is unlikely to come under threat. Resistance is at 1.1330; a breach of 1.1355 would suggest the current mild downward pressure has eased."

1-3 WEEKS VIEW: "EUR rose to a high of 1.1573 two weeks ago. The initial retreat from this peak was sharp, but the downward momentum has since eased over the past few days. We view the current price movements as part of a consolidation phase and expect EUR to trade between 1.1225 and 1.1410 for now."