According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, EUR/USD could see its downside pressure mitigated once 1.0810 is surpassed.

Key Quotes

24-hour view: “We expected EUR to edge lower yesterday. However, EUR rose briefly to 1.0792 before pulling back to close at 1.0736 (+0.25%). The price movements appear to be part of a broad consolidation range. In other words, EUR is likely to trade sideways today, expected to be within a range of 1.0705/1.0775.”

Next 1-3 weeks: “In our most recent narrative from three days ago (07 Feb, spot at 1.0725), we held the view that EUR is likely to weaken further and the level to monitor is at 1.0615. EUR traded mostly sideways the past few days and downward momentum is beginning to wane. That said, only a breach of 1.0810 (no change in ‘strong resistance’ level) would indicate that the weakness that started early this week has come to an end. Overall, while the risk is still on the downside, the chance of EUR dropping to 1.0615 this time around is not high.”