EUR/USD bearish, next target at 1.0460/55 – UOB

FX Strategists at UOB Group remain bearish on EUR/USD, which now targets the area of 1.0460/55 in the next weeks.

Key Quotes

“After several days of lethargic trading, we noted yesterday that EUR has to see a ‘break lower soon’ or the risk of a short-term low would increase quickly”.

“The timing of the breach of the December 2015 low of 1.0540 bodes well for our bearish view and from here, the next most obvious level to aim for is at the 2015 low of 1.0455/60 (seen in March)”.

“All in, the bearish view that started early last week is intact until the stop-loss at 1.0650 is taken out (adjusted from 1.0700)”.