Euro (EUR) could edge lower and the major support at 1.1650 may be tested. In the longer run, price action suggests EUR could decline to 1.1650; it is too early to determine in if it could maintain a foothold below this level, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Price action suggests EUR could decline

24-HOUR VIEW: “The following are excerpts from our update yesterday: ‘The slight increase in downward momentum suggests EUR is likely to edge lower today, but any decline is unlikely to reach the major support at 1.1650’. EUR subsequently dipped to a low of 1.1671, closing modestly lower by 0.12% at 1.1673. Downward momentum remains mild, and we continue to expect EUR to edge lower today. This time around, the major support at 1.1650 may be tested. On the upside, a breach of 1.1705 (with minor resistance at 1.1690) would indicate that the current mild downward pressure has eased.”

1-3 WEEKS VIEW: “We highlighted two days ago (06 Jan, spot at 1.1715) that ‘while the bias remains tilted to the downside, EUR must close below 1.1680 before a move toward 1.1650 can be expected’. Yesterday, EUR closed at 1.1673 (-0.12%). While we would have preferred a lower close, the price action suggest EUR could decline to 1.1650. A break below this level is not ruled out, but it is too early to determine if EUR can maintain a foothold below this level. Overall, only a breach of 1.1730 (‘strong resistance’ level was at 1.1755 yesterday) would indicate that the downward bias has faded.”

Octalas AI

Profit

Everyone's racing to cut costs. We're racing to create profit.

Start Selling through Service

Start Trial

Free for 14 days · No credit card required