To stop declining after breaking above 1.0840 – UOB Group

The Euro (EUR) is under mild downward pressure; it is likely to drift lower, but is unlikely to break the support at 1.0760. In the longer run, should EUR break above 1.0840, it would signal the end of the decline that started early this month, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR unlikely to break the support at 1.0760

24-HOUR VIEW: “After EUR rebounded strongly last Thursday, we highlighted on Friday that ‘The rebound appears to be running ahead of itself, and instead of continuing to rise, EUR is more likely to trade in a 1.0790/1.0840 range.’ Our view was not wrong, as EUR traded between 1.0793 and 1.0839, closing at 1.0793 (-0.31%). There has been a slight increase in momentum. Today, EUR is likely to drift lower, but any decline is unlikely to break the support at 1.0760 (there is another support level at 1.0775). Resistance is at 1.0810; a breach of 1.0825 would indicate that the current mild downward pressure has faded.”

1-3 WEEKS VIEW: “We continue to hold the same view as last Friday (25 Oct, spot at 1.0825). As highlighted, should EUR break above 1.0840, it would signal the end of the decline that started early this month. Until then, there is still a chance for EUR to decline further. That said, there is a pair of strong support levels at 1.0760 and 1.0740.”