EUR/USD could see its decline accelerated below 1.0950 in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘there is room for EUR to drop below the major support at 1.0950’ but we were of the view that ‘a sustained decline below this level is unlikely’. Our view turned out to be correct as EUR dropped to 1.0943 before rebounding quickly. The current movement is likely part of a consolidation phase and EUR is likely to trade sideways between 1.0960 and 1.1025.”

Next 1-3 weeks: “We highlighted yesterday that downward momentum is beginning to build but EUR has to close below 1.0950 before a sustained decline is likely. EUR subsequently dropped to 1.0943 before rebounding. There is no change in our view for now but a breach of 1.1070 (‘strong resistance’ level was at 1.1130 yesterday) would indicate that the build-up in momentum has fizzled out.”