EUR/USD expected to retreat further – UOB

FX Strategists at UOB Group sees EUR/USD grinding lower in the next weeks.

Key Quotes

“We highlighted yesterday that “another leg lower towards the major support at 1.0495/00 would not be surprising”. EUR hit an overnight low of 1.0492 and with downward momentum improving quickly; further weakness is expected from here. The next support below 1.0490 is closer to 1.0450/55 even though this level could be out of reach, at least for today (minor support at 1.0475)”.

“EUR tested last week’s 1.0492 low yesterday but failed to break lower. However, the lack of a significant rebound coupled with improving downward momentum suggests that the immediate pressure is still on the downside. From here, a move to 1.0450/55 would not be surprising. Resistance is at 1.0560 but only a move back above 1.0590 would indicate that a short-term low is in place”.