EUR/USD under pressure, eyes on 1.0505 – UOB

According to FX Strategists at UOB Group, EUR/USD could re-test the key support at 1.0505 in the next weeks.

Key Quotes

“EUR registered a huge range of 277 pips yesterday but ended the day near the day’s low”.

“The weak daily closing suggests that the near-term bias is tilted the downside but based on the current momentum, any further weakness is expected to encounter solid support at the ‘Italian referendum low’ of 1.0505”.

“This level is followed closely by another major support which is the 2015 low of 1.0455/60. Overall, EUR is expected to stay under pressure in the coming days unless it can move and stay above 1.0760 (1.0700 is already a strong short-term resistance)”.