The pair remains poised for another test of the 1.0530 area in the near term, suggested FX Strategists at UOB Group.
“EUR tested the 1.0630 resistance (high of 1.0633) before resuming its recent decline but the down-move did not reach the target indicated at 1.0530 (low of 1.0559). The undertone is still weak and we continue to expect the strong support at 1.0530 to be tested”.
“In line with expectation, EUR continues to grind lower and touched a ‘fresh low’ of 1.0559 yesterday. The undertone is still negative and we continue to expect further weakness towards the major 1.0530 support (the next significant support is much lower at 1.0450/55). The short-term key resistance is pegged at 1.0640, slightly lower than 1.0660 previously”.