EUR/USD short-term top in place? – UOB

FX Strategists at UOB Group noted the pair could have carved a near-term top above the 1.1700 handle.

Key Quotes

“We stated in recent updates that the level to focus on is at the Aug 2015 high of 1.1710. EUR tested this level yesterday with a high of 1.1711”.

“The failure to clear this critical level amidst overall overbought conditions indicates an increased risk of a short top”.

“However, only a break below 1.1590 (stop-loss adjusted higher from 1.1550) would indicate that the bullish phase that started late last week has ended. Overall, unless EUR can ‘punch’ above 1.1710 soon, the risk of a short-term top would increase quickly”.