Euro (EUR) could test 1.1500 before rebounding; the major support at 1.1470 is unlikely to come under threat. In the longer run, the bias for EUR has shifted to the downside; it is too early to tell if it can reach 1.1470, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Might test 1.1500 before rebounding

24-HOUR VIEW: "Two days ago, we expected EUR to 'test 1.1570'. After EUR subsequently dropped to a low of 1.1570, we highlighted yesterday, when EUR was at 1.1590, that 'there is a chance for EUR to test 1.1560'. We stated that 'the major support at 1.1540 is still unlikely to come into view'. Our view of a weaker EUR was correct, but we did not anticipate the sharp decline that easily broke below 1.1540 (low was 1.1517). Although EUR rebounded from the low, the weakness has not stabilised. Today, EUR could test 1.1500 before a more sustained rebound can be expected. The major support at 1.1470 is unlikely to come under threat. Resistance levels are at 1.1555 and 1.1575."

1-3 WEEKS VIEW: "We highlighted on Tuesday (18 Nov, spot at 1.1590) that EUR 'is expected to trade in a range between 1.1540 and 1.1640'. Yesterday, EUR dropped sharply and broke below 1.1540. The bias has shifted to the downside, even though it is currently too early to tell whether EUR can reach the early-month low, near 1.1470. Overall, only a breach of 1.1595 (‘strong resistance’ level) would indicate the downward bias has faded."