The Euro (EUR) may see further weakness, but any decline today is unlikely to breach the key support at 1.1490, according to UOB Group’s FX analysts Quek Ser Leang and Peter Chia.
24-hour outlook:
Last Friday, EUR fell below 1.1540 to a low of 1.1520, in line with UOB’s forecast. While the euro may continue to weaken, momentum indicators show positive divergence, suggesting that the next major support at 1.1490 is unlikely to be tested today. Immediate support lies at 1.1510, while resistance is seen at 1.1555–1.1575, with a break above this range indicating a stabilization in EUR weakness.
1–3 week view:
EUR has been under mild downward pressure, having recently touched a three-month low of 1.1534. UOB notes that the next level to watch is 1.1490, while a breach of 1.1605 (with strong resistance at 1.1635) would invalidate the current bearish view.
Overall, EUR weakness may continue in the short term, but key support levels are likely to hold.
