EUR/USD: Bears can break below 1.0875 – UOB Group

The Euro (EUR) is likely to consolidate between 1.0895 and 1.0930. If EUR breaches 1.0875, it would mean that the likelihood of it rising to 1.1010 has faded, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

The 1.0875 support is a bear magnet

24-HOUR VIEW: “EUR traded in a quiet manner between 1.0908 and 1.0931 last Friday, closing largely unchanged at 1.0916 (-0.02%). The price movements are likely part of a consolidation phase. Today, EUR is likely to trade between 1.0895 and 1.0930.”

1-3 WEEKS VIEW: “Last Monday (05 Aug, spot at 1.0905), we indicated that ‘there is a chance for EUR to advance further, and if it can break above 1.0950, it could trigger a rapid rise to 1.1000.’ After EUR broke above 1.0950 and soared to 1.1008, we indicated on 06 Aug (spot at 1.0955) that EUR ‘is still positive, but it has to surpass 1.1010 before further advance to 1.1070 can be expected.’ Since then, EUR has not been able to make further headway on the upside, trading mostly sideways. From here, if EUR breaches the ‘strong support’ at 1.0875 (level previously at 1.0865), it would mean the likelihood of it rising to 1.1010 has faded.”