EUR/USD bearish below 1.1120 – UOB

According to the research team at UOB Group, EUR/USD’s outlook could shift to bearish on a close below 1.1120.

Key Quotes

“The unexpected break below the 1.1180 support is accompanied by strong downward momentum and the risk has clearly shifted to the downside. 1.1180 is acting as a strong resistance now and this level is expected to cap for a move towards 1.1100”.

“The sharp drop yesterday is gaining momentum rapidly and a daily closing below 1.1120 would indicate that the 2-week neutral consolidation phase has ended (and the start of a bearish phase). This appears to be a likely scenario unless EUR can move and stay above 1.1210 within these 1 to 2 days”.