EUR/USD expected to face solid support around 1.0510 – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note EUR/USD should meet important support around the 1.0510 region in the near term.

Key Quotes

24-hour view: “EUR recovered some of Tuesday’s steep drop as it closed higher by 0.50% (1.0599). The movement appears to be part of a consolidation and EUR is likely to range-trade today, expected to be between 1.0565 and 1.0655.”

Next 1-3 weeks: “After the sharp drop on Tuesday (03 Jan), downward momentum is beginning to build, albeit tentatively. EUR is likely to trade with a downward bias but any decline is expected to face solid support at 1.0510. Overall, only a breach of the ‘strong resistance’ level, which is currently at 1.0675, would indicate that the build-up in downward momentum has fizzled out.”