EUR/USD losing downside momentum? – UOB

The research team at UOB Group sees further pullbacks in the pair to remain shallow.

Key Quotes

“Despite the rapid drop from a high of 1.1173, the current movement is still viewed as part of a consolidation phase”.

“However, the sharp drop has resulted in a downward bias but at this stage, a sustained break below the recent low of 1.1095/00 appears unlikely”.

“EUR continues to trade in a relatively calm manner and this has resulted in a rapid loss in downward momentum. That said, another leg lower to the major 1.1055 support cannot be ruled out just yet (shorts to take partial-profit at this level)”.

“Stop-loss remains unchanged at 1.1200 but a break of 1.1170/75 would be an early indication that a short-term low is in place”.