EUR/USD downside bias unchanged – UOB

In opinion of FX Strategists at UOB Group, the pair’s bearish stance remains intact in the near term.

Key Quotes

“EUR hit a high of 1.1295 before dropping sharply to end the day largely unchanged. The choppy swing has resulted in a mixed outlook even though the immediate bias appears to be tilted to the downside. However, based on the current momentum, any weakness is unlikely to move below the strong support at 1.1180 (next support at 1.1150). Resistance is at 1.1235 followed by 1.1265. The 1.1295 high appears to be ‘safe’ for now”.

“The sharp rise above 1.1265/70 yesterday (high of 1.1295) has put paid to our expectation of a pull-back towards 1.1130. The outlook for EUR remains neutral for now but we expect this pair to trade sideways between 1.1150 and 1.1300. The undertone is still on the weak side but only a move below the rising trend-line support at 1.1150 would indicate the start of a sustained down-move”.