EUR/USD downside bias seems mitigated – UOB

FX Strategists at UOB Group noted the likeliness of further downside in EUR/USD appears somewhat alleviated for the time being.

Key Quotes

“EUR traded sideways as expected albeit at a higher range than anticipated. The undertone has improved somewhat and we could see a slow ‘drift’ higher but 1.0620 is a major level and is expected to offer solid resistance. Support is at 1.0540 followed closely by 1.0520”.

“The downward pressure mentioned in recent updates is waning rapidly and the odds for an extension to 1.0450/55 have diminished. That said, only a move back above 1.0620 would indicate that the immediate downward pressure has eased. All in, EUR has to move and stay below 1.0540 by end of today or it is likely that it has moved into a 1.0530/1.0680 consolidation range (that could last for a while)”.