Euro (EUR) could dip to 1.0430 vs US Dollar (USD) before recovering; the strong support at 1.0415 is unlikely to come under threat. In the longer run, outlook for EUR is positive, with a technical target of 1.0530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Outlook for EUR is positive

24-HOUR VIEW: "We expected EUR to 'consolidate in a 1.0455/1.0505 range' yesterday. Our expectation was incorrect, as EUR dropped to a low of 1.0434, closing at 1.0445 (-0.35%). Despite the decline, there is no significant increase in momentum. That said, EUR could dip to 1.0430 today before recovering. The strong support at 1.0415 is unlikely to come under threat. Resistance is at 1.0465, followed by 1.0485."

1-3 WEEKS VIEW: "Our most recent narrative was from last Friday (14 Feb, spot at 1.0460), wherein 'the outlook for EUR is positive, with a technical target of 1.0530.' EUR then rose to 1.0514 before easing. While upward momentum has slowed to an extent, only a breach of 1.0415 (no change in ‘strong support’ level) would indicate that 1.0530 is out of reach."