UOB Research discusses EUR/USD technical outlook and highlights the importance of the 1.0980 level for near-term directional bias.
"EUR cracked 1.1030 last Thursday (23 Jan) and extended its decline to 1.1008 yesterday (27 Jan). While downward momentum has picked up, the current decline is approaching oversold territory. That said, the risk remains on the downside and only a move above the ‘strong resistance’ at 1.1085 would indicate that the current weakness has stabilized. Until then, EUR could continue to edge lower but any weakness is expected to encounter solid support near last November’s low near 1.0980," UOB notes.
"Looking ahead, if EUR were to register a daily closing below 1.0980, it could open up the way for further weakness towards 1.0945, possibly retesting 1.0875, the low in 2019," UOB adds.