FX Strategists at UOB Group now believe spot could slip back to the 1.1100 region ahead of 1.1070 in the near term.
24-hour view: “Against our expectation of a consolidative day, EUR traded lower overnight and tested below its key support at 1.1140 (low 1.1129) before closing at 1.1138. The undertone has turned negative and it is likely that EUR would slip further across the day. Expect support at 1.1100 and the next key level of 1.1070 is unlikely to come into the picture today. On the topside, resistance is at 1.1170 and only a move above 1.1200 would indicate that downside pressures have eased”.
Next 1-3 weeks: “After 6 days of sideways move, EUR has broken below one of its key supports at 1.1160 overnight and touched a low of 1.1129. The undertone has turned negative and downside pressures have increased. On the downside, expect supports at 1.1100 and 1.1070. A daily close below 1.1100 would probably fuel expectations for the key low of 1.1025 to come next into focus. On the topside, expect resistance at 1.1210 and only a convincing break above the cluster of highs near 1.1250 would indicate that downside pressures have eased”.
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