EUR/USD:UOB Group believe that EUR may fall back below 1.0500

Before the European market opens, the EUR/USD pair is maintaining its position just below 1.0600. Despite a slight rebound in the US Dollar, the pair is holding onto modest gains. However, market sentiment is turning negative in anticipation of the crucial US Nonfarm Payrolls report and a speech from ECB Chief Lagarde.

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group believe that EUR/USD may fall back below the 1.0500 level.

Key Quotes
24-hour view: "Yesterday, we predicted that EUR/USD would trade between 1.0520 and 1.0590, but it rose to a high of 1.0590 before settling at 1.0580 (+0.34%). It may continue to rise slightly today, but it is unlikely to break through strong resistance at 1.0630 (with minor resistance at 1.0605). Support is at 1.0560, and a drop below 1.0540 would suggest that the mild upward pressure has eased."

Next 1-3 weeks: "Our update from two days ago (March 8, when the spot was at 1.0550) is still valid. As we mentioned, downward momentum has improved somewhat after Tuesday's sharp drop. Overall, as long as EUR/USD does not rise above 1.0630 (with no change in 'strong resistance' from yesterday), it is expected to move lower towards 1.0485."