Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group note EUR/USD could still slip back below the 1.0500 level.

Key Quotes

24-hour view: “Yesterday, we expected EUR to trade in a range between 1.0520 and 1.0590. However, EUR edged to a high of 1.0590 before settling at 1.0580 (+0.34%). EUR could continue to edge higher today but it is unlikely to break the strong resistance at 1.0630 (minor resistance is at 1.0605). Support is at 1.0560, a breach of 1.0540 would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “Our update from two days ago (08 Mar, spot at 1.0550) is still valid. As highlighted, after the sharp drop on Tuesday, downward momentum has improved, albeit not much. All in all, as long as EUR does not move above 1.0630 (no change in ‘strong resistance’ from yesterday), it is likely to gravitate lower towards 1.0485.”