There is room for the Euro (EUR) to test the 1.1080 level; the next support at 1.1050 is unlikely to come under threat. In the longer run, EUR is likely to edge lower, but any decline is expected to face strong support at 1.1050, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

EUR must remain below 1.1175 to remain bearish

24-HOUR VIEW: “Our view of range trading yesterday was incorrect, as EUR tumbled, closing lower by 0.45% (1.1112). The sharp drop appears to be a tad overdone, but barring a breach of 1.1150 (minor resistance is at 1.1135), there is room for EUR to test the 1.1080 level. The next support at 1.1050 is unlikely to come under threat.”