EUR/USD risks falling to 1.0450 – UOB

Seems EUR/USD likely to fall further and could retest 1.0450 and 1.0410 levels in the coming weekssuggest economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group.

24 hour perspective: “Our expectations for the EUR to move within a range were wrong, as it fell sharply and closed at a 1-month low of 1.0520 (-0.75%). The decline gained considerable momentum and the Euro is likely to continue That being said, major support at 1.0450 is likely to be out of reach today (the minor support is at 1.0485). Resistance at 1.0545followed by 1.0580″.

Next 1-3 weeks: “We highlighted yesterday (Jan 05, pair at 1.0610) that bearish momentum was starting to consolidate and we held the view that the EUR was likely to trade with a bearish bias, but we expected solid support at 1.0510. In trading New York, the Euro fell sharply and approached 1.0510 (1.0513 low).The bearish momentum has further improved and a break of 1.0510 would not be surprising.In view of the improving momentum, the Euro could weaken to next support at 1.0450, possibly 1.0410. To the upside, a break of 1.0630 (the “strong resistance” level was at 1.0675 yesterday) would indicate that the bearish pressure has eased.”