EUR/USD: Chance to edge lower and test 1.0320 – UOB Group

The Euro (EUR) could edge lower and test 1.0320; the major support at 1.0300 is unlikely to come under threat. In the longer run, bias for EUR is tilted to the upside; any advance is likely part of a higher trading range of 1.0300/1.0465, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The major support at 1.0300 is unlikely to come under threat

24-HOUR VIEW: “Two days ago, EUR surged to 1.0436 before pulling back. Yesterday, we indicated that ‘although the sharp and swift rise appears to be running ahead of itself, there is scope for EUR to retest the 1.0435 level before a more sustained pullback can be expected.’ We added, ‘a clear break above 1.0435 seems unlikely.’ The subsequent price action aligned with our view as EUR rose to a high of 1.0434. EUR pulled back from the high, closing lower by 0.49% at 1.0339. There has been a slight increase in downward momentum, and today, EUR could edge lower and test 1.0320. The major support at 1.0300 is unlikely to come under threat. On the upside, resistance levels are at 1.0370 and 1.0395.”

1-3 WEEKS VIEW: “Yesterday (07 Jan), when EUR was trading at 1.0380, we were of the view that ‘the near-term bias is tilted to the upside, even though any advance is likely part of a higher trading range of 1.0300/1.0465.’ We were also of the view that EUR ‘is unlikely to break clearly above 1.0465.’ Our view remains unchanged.”