Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group note there is still scope for EUR/USD to revisit 1.0615 in the near term.

Key Quotes

24-hour view: “We expected EUR to weaken yesterday but we were of the view that the major support at 1.0615 is unlikely to come under threat. Our view was not wrong as EUR dropped to 1.0654 but we did not quite expect the sharp bounce from the low (high has been 1.0729). Downward pressure has eased and EUR is likely to consolidate today, possibly within a range of 1.0670/1.0750.”

Next 1-3 weeks: “We highlighted yesterday (13 Feb, spot at 1.0675) that the downward trajectory in EUR has resumed. We added, ‘the next level to focus on remains at 1.0615’. EUR subsequently dropped to 1.0654 before rebounding strongly to end the day at 1.0720 (+0.42%). While there is no change in our view, a break of 1.0750 (no change in ‘strong resistance’ level) would indicate that the EUR weakness that started early last week has come to an end.”