EUR/USD bearish below 1.0700 – UOB

FX Strategists at UOB Group noted the outlook on EUR/USD remain bearish while below the 1.0700 handle.

Key Quotes

“The bearish phase that started last week is struggling to maintain its momentum”.

“The major support at 1.0538 (low in 2015) is still intact as EUR consolidates after touching a low of 1.0567 last Friday”.

“Indicators are clearly oversold and further consolidation above 1.0535/40 would lead to a rapid loss in downward momentum and diminish the odds for further EUR weakness”.

“However, as long as the stop-loss at 1.0700 is intact, the outlook for this pair is still deemed as bearish but we really need to see a break lower soon or the risk of a short-term low would increase quickly”.

To learn more about this topic, check our video analysis: