EUR/USD strong support lines up at 1.1000 – UOB

FX Strategists at UOB Group expect the pair to grind lower although 1.10 is seen as a tough support.

Key Quotes

24-hour view: “The breach of the solid support at 1.1100 followed by a daily close below that level overnight has clearly negated the “slightly positive” underlying tone expected yesterday. From here, downside momentum will gradually build and we could see a test of overnight low of 1.1058. Support is at 1.1030 while resistance is 1.1090 then 1.1110”.

Next 1-3 weeks: “After the clear break of 1.1100 overnight, EUR is likely to have rekindled its downside momentum. It is now expected to trade with a ‘downside bias’. That said, it is unlikely to accelerate downwards just yet. Strong support is expected at 1.1050 then 1.1000 with the latter unlikely to yield so easily. On the topside, we expect resistance at 1.1075 and 1.1100. Only a move above 1.1100 would negate the ‘downside bias’ and indicate that the recent weakness in EUR has stabilized”.