EUR/USD faces a solid support around 1.0830 – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note further downside in EUR/USD is likely to meet s decent support near 1.0830.

Key Quotes

24-hour view: EUR dipped briefly to a fresh 6-week low of 1.0843 last Friday before recovering to end the day little changed at 1.0865 (-0.06%). Despite making a fresh low, there is hardly any increase in downward momentum. Today, we expect USD to trade in a range, likely between 1.0845 and 1.0900. 

Next 1-3 weeks: Last Friday, EUR dropped to a fresh 6-week low of 1.0843. Downward momentum has increased, albeit just a tad. While there is room for EUR to weaken further, the lackluster momentum suggests the pace of any decline is likely to be slow. Support is at 1.0830, followed by 1.0790, a solid support level. On the upside, if EUR breaches 1.0930, it would mean that EUR is not weakening further.