EUR/USD is expected to meet support around 1.2130 – UOB

According to FX Strategists at UOB Group, occasional bearish attempts in EUR/USD are forecast to meet support in the 1.2130 region.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the rapid decline appears to be running ahead of itself but there is room for the weakness in EUR to test the major support at 1.2160’. Our expectation did not materialize as EUR traded between 1.2173 and 1.2215 before closing little changed at 1.2192 (+0.02%). Despite the relatively quiet price actions, we continue to see chance for EUR to test 1.2160. That said, the prospect for a sustained decline below this level is not high (next support is at 1.2130). Resistance is at 1.2210 followed by 1.2230.”

Next 1-3 weeks: “Our update from yesterday (27 May, spot at 1.2190) still stands. As highlighted, the near-term risk is tilted to the downside but at this stage, any weakness is expected to encounter solid support at 1.2130. On a shorter-term note, 1.2160 is already a strong support level. Only a move back above 1.2265 (no change in ‘strong resistance’ level) would indicate that the current mild downward pressure has eased.”