EUR/USD: Downside bias dissipated above 1.1400 – UOB

FX Strategists at UOB Group see the selling pressure alleviated in EUR/USD above the 1.1400 mark.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘the rebound in EUR has scope to extend but is unlikely to break the strong resistance at 1.1400’.Our view was not wrong as EUR rose to 1.1395 before closing at 1.1373 (+0.15%). Upward momentum still appears to be lackluster and EUR is unlikely to strengthen much further. For today, EUR is more likely to trade sideways, expected to be within a range of 1.1340/1.1400.”

Next 1-3 weeks: “Our view from yesterday (16 Feb, spot at 1.1355) still stands. As highlighted, oversold shorter-term conditions suggest that it may take a while before EUR head lower again. However, a breach of 1.1400 (no change in ‘strong resistance’ level from yesterday) would indicate that the downward pressure that started late last week has dissipated.”