EUR/USD undertone remains negative – UOB

In view of FX Strategists at UOB Group, the negative bias remains unchanged around the pair.

Key Quotes

24-hour view: “EUR touched a high of 1.1690 before dropping sharply to end near the day’s low of 1.1597 (close of 1.1608). The undertone is clearly negative even though the recent low near 1.1575 is unlikely to yield so easily (minor support is at 1.1590). On the upside, only a move back above 1.1665 would indicate that the current weakness has stabilized (minor resistance is at 1.1640)”.

Next 1-3 weeks: “We have been bearish for more than a week now and since then EUR has not been able to make much headway on the downside. That said, the weak daily closing on Friday is encouraging for our view and we continue to expect EUR to move lower towards 1.1530. Positioning wise, those who entered short at the suggested level of 1.1675 may like to lower their ‘stop-loss’ to 1.1700 (from 1.1735), just above last week’s high near 1.1690”.