As long as 1.0800 is not breached, the Euro (EUR) could drop to 1.0665 before stabilisation can be expected. In the longer run, price action suggests further EUR weakness; the levels to watch are 1.0665 and 1.0600, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR can drop to 1.0665 before stabilisation

24-HOUR VIEW: “After EUR dropped sharply in early Asian trade yesterday, we indicated that ‘The sharp drop could extend but is unlikely to break the major support at 1.0780.’ However, EUR plunged through 1.0780 and dropped further to 1.0681. EUR closed at 1.0728, lower by a whopping 1.85%. After the frenetic price action yesterday, EUR is likely to settle into a more moderate range today. Overall, as long as 1.0800 is not breached, EUR could drop to 1.0665 before stabilisation can be expected. A sustained break below this level seems unlikely.”