A probable drop to 1.0350 in EUR/USD seems to have been losing momentum, according to FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

Key Quotes

24-hour view: “EUR consolidated between 1.0415 and 1.0462 yesterday before closing at little changed at 1.0421 (-0.07%). Momentum indicators are mostly neutral and EUR could continue to consolidate, likely within a range of 1.0410/1.0470.”

Next 1-3 weeks: “Our latest narrative was from last Friday (01 Jul, spot at 1.0475) where EUR could consolidate for a couple of days first before attempting to move towards 1.0350. EUR subsequently dropped to 1.0365 before rebounding. Downward momentum has slowed somewhat and the odds for EUR to move to 1.0350 have diminished. Note that 1.0385 and 1.0365 are both rather solid support now. Overall, only a break of 1.0500 (‘strong resistance’ level previously at 1.0535) would indicate that 1.0350 is out of reach this time round.”