Barring a break above 1.0660, EUR could decline further to 1.0585 before stabilisation can be expected. In the longer run, downward momentum remains strong; the focus is on 1.0555. The next technical objective below 1.0555 is at 1.0500, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The focus is on 1.0555

24-HOUR VIEW: “Yesterday, when EUR was at 1.0655, we highlighted that it ‘could decline further, but the major support at 1.0600 could be just out of reach.’ Our view of a lower EUR was correct, even though it fell more than expected to 1.0594, recovering to close at 1.0623 (-0.29%). Not surprisingly, after dropping sharply over the past few days, conditions are deeply oversold. However, the weakness has not stabilised. Today, barring a break above 1.0660 (minor resistance is at 1.0640), EUR could decline further to 1.0585 before stabilisation can be expected. This time around, the next major support at 1.0555 is likely out of reach.”