UOB Group currency strategists Lee Sue Ann and Quek Ser Leang noted that the EUR/USD faces strong support around 1.0350 at the moment.
24 hour outlook: “Yesterday we highlighted that bearish momentum had improved and the risk was to the downside. We added that any weakness was likely to be met by strong support at 1.0485. Expected weakness bettered our expectations as the euro easily broke above the 1.0485 level and crashed to 1.0433. As long as you are oversold, the rapid decline could extend to 1.0400. For today, a sustained drop below this level is unlikely. Resistance is at 1.0475, followed by 1.0505″.
Next 1-3 weeks: “We expected the euro to consolidate for about 2 weeks. Our view was not wrong, as the euro consolidated until yesterday (June 29), when it dipped below the bottom of our expected range of 1.0460/ 1.0630 (1.0433 low) Price action suggests consolidation phase is over Risk has shifted to the downside and a break of 1.0400 would not be surprising That said, 1.0350 expected to offer strong support. Overall, only a break of strong resistance, currently at 1.0535, would indicate that downside risk has dissipated.”
Source: Fx Street
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