Further weakness could drag EUR/USD to the 1.0485 level in the next weeks, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
24-hour view: “We expected EUR to weaken further yesterday but we were of the view that ‘any decline is unlikely to break the major support at 1.0485’. We indicated ‘there is another support at 1.0530’. EUR dipped to 1.0523 in Asian trade before trading sideways for the rest of the sessions. EUR appears to have moved into a consolidation phase, and it is likely to trade in a range today, expected to be between 1.0520 and 1.0575.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (08 Mar, spot at 1.0550). As highlighted, after the sharp drop on Tuesday, downward momentum has improved, albeit not much. All in all, as long as EUR does not move above 1.0630 (‘strong resistance’ was at 1.0650 yesterday), it is likely to gravitate lower towards 1.0485.”