EUR/USD stabilized above 1.0640 – UOB

According to FX Strategists at UOB Group, the pair could find some stabilization only above 1.0640.

Key Quotes

“The 1.0530 target indicated yesterday was exceeded as EUR dropped to a low of 1.0520. The subsequent sharp and strong rebound from the low suggests that EUR is trying to form a temporary base for a stronger recovery. For now, the current EUR strength appears to have scope to extend higher but 1.0640 is a strong resistance and is unlikely to yield so easily”.

“EUR exceeded the ‘short-term target’ of 1.0530 yesterday with a low of 1.0520. The sharp rebound from the low coupled with oversold conditions suggest that the current pullback (from the 1.0825/30 high two weeks ago) is trying to form a base. However, only a move back above 1.0640 would indicate that the current weakness has stabilized. Until then, another push lower to 1.0520/30 is not ruled out even though the odds for such a move have diminished considerably”.