EUR/USD support comes in at 1.0845/20 – UOB

Strategists at UOB Group see EUR/USD’s downside meeting strong support in the 1.0845/20 band in the near term.

Key Quotes

“While the wild swings in EUR yesterday has resulted in a very mixed outlook, the weak daily closing does not bode well for this pair. That said, in view of the rather oversold conditions, any further decline is expected to encounter solid support near the October’s low of 1.0845/50 (followed closely by another strong support near 1.0820). Resistance is at 1.0960 but only a move back above 1.1010 would indicate that the immediate downward pressure has eased”.

“While there is no change to the current neutral outlook for EUR, the weak daily closing has resulted in a negative undertone. The immediate bias is tilted to the downside but 1.0820/1.0845 is a major support zone and is expected to offer solid support. Overall, only a move back above 1.1090 would indicate that the immediate downward pressure has eased”.