The Euro (EUR) could edge higher to 1.0520; the strong resistance at 1.0560 is unlikely to come under threat. In the longer run, EUR must break and remain below the 1.0333 low before further decline can be expected, UON Group’s FX analyst Quek Ser Leang and Lee Sue Ann notes.

EUR to decline further below the 1.0333 low

24-HOUR VIEW: “Following last Thursday’s sharp drop, we pointed out on Friday that EUR ‘could break the significant support at 1.0450.’ However, we were of the view that ‘the next technical target at 1.0400 is likely out of reach for the time being.’ While our view of a lower EUR was not wrong, we did not anticipate it to plummet to 1.0333. EUR rebounded quickly and closed at 1.0417 but opened higher in early Asian trade today. There has been a slight increase in momentum, and it could edge higher to 1.0520 today. The strong resistance at 1.0560 is unlikely to come under threat. Support is at 1.0450, followed by 1.0420.”