FX Strategists at UOB Group noted EUR/USD could accelerate losses if 1.1170 is cleared.
Key Quotes
24-hour view: “Last Friday, we highlighted that EUR ‘could test the 1.1170 support but prospect for a sustained decline below this level is not high’. EUR subsequently popped to a high of 1.1254, dropped quickly to 1.1167 before ending the day on a soft note at 1.1175 (-0.24%). While downward momentum appears patchy, the weakness in EUR is not showing sign of stabilizing just yet. From here, EUR could drift lower to 1.1145 first before stabilization can be expected. Resistance is at 1.1210 followed by 1.1235.”
Next 1-3 weeks: “We highlighted yesterday (18 Jun. spot at 1.1245) that ‘downward pressure has ticked up but EUR is still likely in a 1.1170/1.1380 consolidation range’. We added, EUR ‘has to close below 1.1170 before a deeper pullback can be expected’. EUR closed on a relatively soft note at 1.1202 yesterday (-0.36%) and downward pressure has picked up further. From here, if EUR closes below 1.1170, it could weaken further to 1.1100. The odds for such a scenario are not high for now but would increase quickly unless EUR can move above 1.1280 within these 1 to 2 days.”
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