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Spot is seen losing further ground in the near term and could visit the 1.1285 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The expected consolidation phase ended sooner than anticipated as EUR resumes its recent decline and hit a fresh low of 1.1328. While downward momentum is not as strong as preferred, the immediate risk is clearly for further EUR weakness even though the major 1.1285 support is likely out of reach for now (1.1305 is already quite a strong level). Resistance is at 1.1390 followed by yesterday’s high near 1.1430. The latter level is expected to be strong enough to cap any intraday recovery”.

Next 1-3 weeks: “In line with expectation, EUR extended its decline as it hit a ‘fresh’ low of 1.1328 yesterday. As highlighted on Monday (13 Aug, spot at 1.1400), there is “room for further weakness in the coming days” and the next level to focus on is at 1.1285 followed by 1.1185. The former level appears to be within reach sometime this week. On the upside, the ‘stop-loss’ level is adjusted lower to 1.1460 from 1.1500. Shorter-term, 1.1430 is already a strong resistance level”.