EUR/USD further strength unlikely – UOB

Further upside in EUR/USD appears unlikely in the near term, suggested strategists at UOB Group.

Key Quotes

“The anticipated pull-back in EUR moved below the strong 1.1045 support (low of 1.1026) before recovering. The undertone is still weak but at this stage, a clear break below the major 1.1010 support seems unlikely. Resistance is at 1.1075 ahead of the now rather strong level of 1.1110”.

“The weak daily closing yesterday has clearly diminished the odds for further EUR strength (last Friday’s peak of 1.1143 fell just short of the immediate target of 1.1145). From here a move below 1.1010 would indicate that a short-term top is in place and the start of a consolidation phase. The downside risk would continue to increase unless EUR can reclaim 1.1110 within these 1 to 2 days”.

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