EUR/USD further downside unlikely – UOB

FX Strategists at UOB Group believe further downside in EUR/USD appears unlikely in the short term.

Key Quotes

“EUR traded in a 1.0577/1.0630 range yesterday (close to our expectation of 1.0570/1.0630) before closing largely unchanged. Indicators are still mostly neutral and further range trading is expected albeit likely at a higher range of 1.0585/1.0645”.

“Despite the overall negative undertone, EUR has been unable to make much headway on the downside. The recent downward pressure is easing and the odds for extension towards 1.0525 have diminished. That said, only a break above 1.0665 would indicate that a short-term low is in place. Until then, another push lower is not ruled out just yet even though time is not on the side of those looking for extension lower”.