EUR/USD: A break below 1.0640 to trigger a sustained decline – UOB Group
|The Euro (EUR) is likely to trade in a range of 1.0685/1.0730 and remain under pressure. There’s a chance of a sustained decline for EUR/USD, but only if it can break below 1.0640, UOB Group analysts note.
The pair remains sidelined
24-HOUR VIEW: “Yesterday, we indicated that EUR 'could decline further, but it is not clear if it can break the significant support level at 1.0640.' Our view was incorrect, as EUR rebounded to 1.0726, closing at 1.0702 (+0.22%). The price action is likely part of a consolidation phase. Today, we expect EUR to trade in a range of 1.0685/1.0730.”
1-3 WEEKS VIEW: “Our update from yesterday (27 Jun, spot at 1.0702) is still valid. As indicated, downward momentum is building again, but at this stage, it does not appear to be enough to suggest the start of a sustained decline. Furthermore, there is a significant support level at 1.0640. That said, provided that 1.0735 (no change in ‘strong resistance’ level from yesterday) is not breached, EUR is likely to remain under pressure, but a sustained decline is likely only if it can break clearly below 1.0640.”
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