EUR/USD bearish, room for a visit to 1.1530 – UOB

According to FX Strategists at UOB Group, the pair’s stance remains bearish for the time being, allowing a probable test of the 1.1530 region in the next weeks.

Key Quotes

24-hour view: “EUR traded sideways as expected but closed near the day’s high. The improved undertone could lead to a test of the 1.1675 resistance but a clear break above this level is not expected (further up, 1.1705 is a rather strong resistance). Support is at 1.1610 but the stronger level is at 1.1590”.

Next 1-3 weeks: “There is not much to add as we just shifted from a neutral to bearish stance last Friday. As highlighted, despite the large decline post-ECB, there is scope for extension to 1.1530. That said, any further weakness would likely be at a slower pace and 1.1530 is expected to offer solid support. Those looking to sell may like to wait for a bounce to 1.1675 with an unchanged stop loss at 1.1755”.