EUR/USD faces some downside pressure although it should meet decent support around 1.1285, noted UOB Group’s FX Strategists.

Key Quotes

24-hour view: “We expected EUR to trade ‘sideways within a range of 1.1320/1.1370’ yesterday. EUR subsequently rose to 1.1368 before dropping to 1.1301 during NY session. Downward momentum has improved somewhat and EUR could edge lower but a sustained drop below the major support at 1.1285 is unlikely. Resistance is at 1.1335, a breach of 1.1360 would indicate that the current mild downward pressure has eased.”

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