The Euro (EUR) is likely to trade sideways between 1.0830 and 1.0870. EUR might also trade with a downward bias; in this case, the 1.0815 level is expected to provide solid support, UOB Group FX analysts Quek Ser Leang and Peter Chia note.
The next level to watch is 1.0815
24-HOUR VIEW: “Two days ago, we held the view that EUR ‘could edge lower, but any decline is unlikely to break clearly below 1.0815.’ After EUR dipped to 1.0824 and rebounded, we indicated yesterday that ‘there is still a chance for EUR to edge lower.’ However, we noted that ‘any decline is still unlikely to break clearly below 1.015.’ EUR subsequently dipped to 1.0826 and then rebounded, closing largely unchanged at 1.0844 (+0.05%). The price movements are likely part of a sideways trading phase. Today, we expect EUR to trade between 1.0830 and 1.0870.”
1-3 WEEKS VIEW: “Our update from Wednesday (24 Jul, spot at 1.0850) still stands. As highlighted, downward momentum is building, but not sufficiently enough to suggest a significant decline. EUR is likely to trade with a downward bias, but the 1.0815 level is expected to provide solid support. The downward bias is intact as long as 1.0890 (no change in ‘strong resistance’ level from yesterday) is not breached. Looking ahead, if EUR breaks clearly below 1.0815, the next level to watch is 1.0760.”
