EUR/USD solid support comes at 1.0505 – UOB

FX Strategists at UOB Gorup noted the pair remains well supported around recent lows at 1.0505 for the time being.

Key Quotes

“The anticipated EUR weakness exceeded our expectation by moving below the 1.0560/65 target to reach 1.0528. With no signs of stabilization just yet, the decline appears to have room to extend lower to test the 1.0500/05 low seen on the day of Italian referendum”.

“As highlighted, the near-term pressure is tilted to the downside but any decline is expected to encounter solid support at the ‘Italian referendum’ low of 1.0505. This level is followed closely by another major support which is the 2015 low of 1.0455/60”.

“Overall, EUR is expected to stay under pressure in the coming days unless it can move and stay above 1.0670 (1.0630 is already a strong short-term resistance)”.