UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia note further downside in EUR/USD is likely on a breach of 0.9630.

Key Quotes

24-hour view: “EUR traded in a relatively quiet manner between 0.9666 and 0.9734 before closing largely unchanged at 0.9704 (+0.01%). The price actions are likely part of a consolidation phase and EUR is likely to trade within a range of 0.9660/0.9770 for today.”

Next 1-3 weeks: “Despite the relatively sharp pullback from last week’s high of 0.9999, the decline in EUR lacks momentum. That said, the bias appears to be tilted to the downside but EUR has to break clearly below 0.9630 before a sustained decline can be expected. On the upside, a breach of 0.9820 (‘strong resistance’ level) would indicate the current mild downward pressure has eased.”