Leading FX strategists Quek Ser Leang and Peter Chia from UOB Group foresee a potential break below the crucial support level of 1.1025 for the Euro (EUR). If this level is breached, the next support at 1.0995 may come into play, signaling further downside for the currency.
EUR May Test 1.0995 After Breaking Below 1.1025
24-HOUR VIEW: Despite choppy trading, EUR has shown signs of weakening. Following a dip to 1.1033, the currency is poised to break below the key level of 1.1025 today. The next support at 1.0995 could be tested, with resistance levels at 1.1055 and 1.1075.
1-3 WEEKS VIEW: With mild downward pressure, EUR could retest the recent low of 1.1025. However, a sustained break below this level is not highly likely unless 1.1160 is breached. If EUR drops below 1.1025, it may decline further to 1.0995, while facing strong resistance at 1.1105 on the upside.
Analysis:
The Euro (EUR) is currently facing a critical juncture as it approaches the key support level of 1.1025. A break below this level could trigger a further decline towards 1.0995, potentially impacting the currency’s overall performance in the near term. Traders and investors should closely monitor these levels and adjust their strategies accordingly to navigate potential market risks.