EUR/USD further weakness appears limited – UOB

According to the research team at UOB Group, the pair’s downside momentum seems to have lost some traction.

Key Quotes

“Despite dropping sharply to a low of 1.1027/32 yesterday, downward momentum is not strong and further sustained weakness appears unlikely. The current movement is viewed as part of a consolidation phase and this pair is expected to trade sideways from here”.

“While the rapid drop from the 1.1180/85 high on Tuesday is reassuring for our bearish EUR view, downward momentum is not as strong as we would like. This pair has to accelerate lower soon as a prolonged consolidation above the postBrexit low of 1.0909 would decrease the odds for further EUR weakness”.