EUR/USD remains at risk of a likely downside move – UOB

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The EUR / USD faces some downside pressure, although it should find decent support around 1.1285, note currency strategists at UOB Group.

24 hour perspective: “We expected the Euro to trade sideways within a range of 1.1320/1.1370 yesterday. EUR subsequently rose to 1.1368 before falling to 1.1301 during the New York session. Downside momentum has improved somewhat and euro could move lower but sustained drop below main support at 1.1285 unlikely. Resistance is at 1.1335, and a gap to 1.1360 would indicate that the current slight downward pressure has eased.”

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Next 1-3 weeks: “Our view from yesterday (Jan 20, pair at 1.1340) still stands. As highlighted, there is a slight downward bias in the Euro, but any weakness is likely to be limited to a test of 1.1285. The downside bias is intact as long as the single currency does not move above 1.1385 (‘strong resistance’ level was at 1.1400 yesterday). Going forward, if there is a clear break of 1.1285, the next support level is at 1.1240.”

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