EUR/USD outlook shifted to bearish – UOB

The research team at UOB Group has shifted its stance to bearish from neutral for EUR/USD in the near-term.

Key Quotes

“As highlighted yesterday, EUR is expected to remain under pressure and the decline to test the strong 1.1200 support was not surprising”.

“While the daily closing is above 1.1200 (albeit by just a few pips), it is enough to indicate that the current neutral phase has shifted to bearish”.

“However, downward momentum is only beginning to improve and any weakness could be slow and grinding. Overall, in order to maintain the current downward pressure, any rebound should not move above 1.1290”.

“The immediate target is for a move to 1.1110 (rising trend-line) followed closely by last month’s low of 1.1095. A clear break below these strong supports could potentially lead to a sharp and rapid drop as the next significant level is only at the 1.0990”.