The Euro (EUR) could break 1.1025; the next support at 1.0995 could be out of reach for now. In the longer run, if EUR breaks below 1.1025, it could decline further to 1.0995, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Below 1.1025 EUR may test 1.0995

24-HOUR VIEW: “Last Friday, EUR traded choppily. Yesterday, we indicated that ‘despite the choppy price movements, the underlying tone seems to have softened somewhat.’ We expected EUR to ‘edge lower, possibly testing the 1.1055 level.’ However, we pointed out that ‘last week’s low of 1.1025 is unlikely to come into view.’ Our expectations were not wrong, even though EUR fell more than expected, reaching a low of 1.1033. Given that downward momentum has increased further, EUR is likely to break 1.1025 today. The next support at 1.0995 could be out of reach for now. Resistance levels are at 1.1055 and 1.1075.”