EUR/USD moved into a bearish phase – UOB

In view of FX Strategists at UOB Group, the pair has moved into a bearish phase after breaking below the key 1.1660 region on Thursday.

Key Quotes

“We have held a ‘negative’ view on EUR since Monday and expected EUR to “drift lower to 1.1665/70”.

“Instead of ‘drifting’ lower, EUR nose-dived and took out the major 1.1665/70 support with ease. The break of the key support amidst impulsive downward momentum indicates that EUR has moved into a bearish phase”.

“That said, EUR has registered a 200 pips decline from yesterday’s peak of 1.1835 and any further weakness would likely be at a slower pace and the next level at 1.1530 is expected to offer solid support (next key level is at 1.1435)”.

“On the upside, key resistance is at 1.1835 but a move back above 1.1755 (stop-loss) is enough to indicate that a short-term low is in place. Those looking to sell may like to wait for a bounce to 1.1675”.