Sharp selloff seems excessive; instead of weakening further, the Euro (EUR) is likely to consolidate in a range of 1.0945/1.1010, or, in the broader range between 1.0910 and 1.1045, UOB Group Quek Ser Leang and Lee Sue Ann note.

Closest resistance is at 1.1010

24-HOUR VIEW: “Two days ago, EUR rose sharply to 1.1047 and then pulled back. Yesterday, we indicated that ‘the pullback in overbought conditions suggests EUR is unlikely to rise further.’ We expected EUR to ‘trade in a sideways range of 1.0985/1.1045.’ EUR traded sideways until NY trading, when it sold off sharply, reaching a low of 1.0948. The selloff seems excessive, and EUR is unlikely to weaken much further. Today, EUR is more likely to consolidate in a range of 1.0945/1.1010.”