EUR/USD still faces some downside pressure – UOB

24 Jan 2022

FX Strategists at UOB Group noted EUR/USD risks a potential move lower with support at 1.1285 in the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that EUR ‘could edge lower but a sustained drop below the major support at 1.1285 is unlikely’. Our expectations did not materialize as EUR dipped to 1.1299 before rebounding. Downward pressure has eased and EUR is likely to consolidate and trade between 1.1310 and 1.1360 for today.”

Next 1-3 weeks: “Our latest narrative from last Thursday (20 Jan, spot at 1.1340) still stands. As highlighted, there is a slight downward bias in EUR but any weakness is likely limited to a test of 1.1285. The downward bias is intact as long as EUR does not move above 1.1385 (no change in ‘strong resistance’ level from last Friday). Looking ahead, if there is a clear break of 1.1285, the next support level to watch is at 1.1240.”

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