Unlikely to threaten the major support at 1.1680 – UOB Group

Euro (EUR) could edge lower, but any decline is unlikely to threaten the major support at 1.1680. In the longer run, the bias for EUR is tilted to the downside toward 1.1680, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Bias for EUR is tilted to the downside

24-HOUR VIEW: “Last Friday, EUR fluctuated between 1.1713 and 1.1764 before settling on a soft note at 1.1719, down by 0.22%. The tentative increase in downward momentum could lead to EUR edging lower today. However, based on the current momentum, any decline is unlikely to threaten the major support at 1.1680 today. On the upside, resistance levels are at 1.1735 and 1.1750.”

1-3 WEEKS VIEW: “EUR rose to a high of 1.1807 late last month and then pulled back. The pullback has gathered momentum, but not sufficient to indicate a sustained decline. That said, the bias from here is tilted to the downside toward 1.1680. Looking ahead, if EUR breaks and holds below this level, it could trigger a more sizeable pullback towards 1.1650. The current mild downward pressure would remain in place as long as the ‘strong resistance’ level, now at 1.1775 is not breached.”