Only a breach of 1.0870 would mean the Euro (EUR) dropping further to 1.0760 is diminishing, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

Bearsh push towards 1.0760

24-HOUR VIEW: “Yesterday, we held the view that ‘there is a chance for EUR to dip to 1.0790 before the risk of more sustained rebound increases.’ The price action did not turn out as we expected, as EUR fluctuated between 1.0801 and 1.0849, closing little changed at 1.0825 (+0.09%). There has been no marked increase in either downward or upward momentum. Today, we expect EUR to trade in a sideways range of 1.0800/1.0850.”

1-3 WEEKS VIEW: “We turned negative in EUR in the middle of last week. In our latest narrative from two days ago (30 Jul, spot at 1.0820), we indicated that ‘the view for EUR is still negative, and the next level to focus on is at 1.0760.’ EUR has not been able to make further headway on the downside. Downward momentum is showing tentative signs of slowing, and the chance of EUR dropping further to 1.0760 is diminishing. However, only a breach of 1.0870 (no change in ‘strong resistance’ level) would mean that 1.0760 is out of reach this time round.”