EUR/USD: downward pressure persists – UOB

FX Strategists at UOB Group stick to the neutral stance on the pair, although risks remain for a test of 1.0615/0575.

Key Quotes

“EUR eased off quickly after touching a high of 1.0709 during London’s hours. While further weakness seems likely, patchy downward momentum suggests a grinding down-move towards the major 1.0615/20 support (which is expected to offer solid support). A break below this level could lead to a rapid drop towards the next key level at 1.0585/90”.

“EUR took a peek above 1.0700 yesterday (high of 1.0709) before easing off quickly. The down-move is lacking in momentum but as mentioned previously, the current shortterm weakness appears to have scope to extend lower to 1.0615 (with lower odds for extension to 1.0575). Only a move back above 1.0730 would indicate that the immediate downward pressure has eased (1.0710 is already a strong resistance)”.