In opinion of Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group, further downside in EUR/USD should meet tough contention around 1.0830.

Key Quotes

24-hour view: “While we expected EUR to drop yesterday, we indicated that ‘any weakness is viewed as part of a 1.0940/1.1045 range’. However, EUR easily breached 1.0940 and dropped to 1.0907. Downward momentum is improving and EUR is likely to decline further. In view of the oversold conditions, a sustained drop below 1.0890 is unlikely. The major support at 1.0830 is not expected to come into view. Resistance is at 1.0950; a break above 1.0975 would suggest that EUR is not declining further.”

Next 1-3 weeks: “We noted yesterday (17 Apr, spot at 1.0990) that while upward momentum is beginning to fade, only a breach of 1.0940 would indicate that EUR is not strengthening further. In NY trade, EUR cracked 1.0940 and fell to a low of 1.0907. Downward momentum appears to be building, albeit tentatively. From here, EUR is likely to trade with a downward bias but any decline is expected to face solid support at 1.0830. To put it another way, at this stage, a clear break below 1.0830 appears unlikely. The downside bias is intact as long as EUR stays below the ‘strong resistance’ level, currently at 1.1025.”