EUR/USD negative perspective near term – UOB

The research team at UOB Group remains bearish on EUR/USD, expecting further pullbacks in the next 1-3 weeks.

Key Quotes

“The anticipated EUR weakness moved below the 1.1250 target to touch a low of 1.1243. The weak daily closing suggests further downward pressure towards 1.1205/10 but a sustained move below this level is not expected. That said, the immediate pressure is on the downside and only a move back above 1.1295 would indicate that the downward pressure has eased”.

“The anticipated extension lower in EUR was more rapid than expected and the undertone is clearly negative from here. That said, only a daily closing below 1.1200 would indicate that the current neutral outlook has shifted to bearish (for an immediate target of 1.1100). Overall, the downward pressure would continue to increase unless this pair can reclaim 1.1330 within these few days”.