EUR/USD short term low could be in place – UOB

The research team at UOB Group has slipped the chance that EUR/USD could have carved an interim low in light of the recent price action.

Key Quotes

“The sharp spike higher in EUR was clearly unexpected but at this stage, the up-move appears to be running ahead of itself. However, another attempt to move towards the strong resistance at 1.1230 would not be surprising”.

“The stop-loss for our bearish EUR view is barely intact at 1.1210”.

“The unexpected strong recovery yesterday has clearly increased the risk of a short-term low”.

“A move above 1.1210 would indicate the start of a neutral consolidation phase, likely between 1.1120 and 1.1280. Only a clear break below the major 1.1120 support would indicate that the next leg lower has started”.