EUR/USD could re-test 1.0595 – UOB

EUR/USD remains poised for a potential test of the 1.0590 region in the short-term, suggested FX Strategists at UOB Group.

Key Quotes

“EUR edged lower to hit 1.0649 before recovering. The recent sharp decline is showing sign of stabilizing and the downside risk appears to be limited from here. That said, it is too early to expect a sustained recovery and EUR is more likely to trade sideways at these lower levels”.

“The pace and depth of the pull-back from last week’s 1.0904 high came as a surprise. The immediate pressure is still clearly on the downside towards the major 1.0595 support even though oversold short-term conditions suggest that this level is unlikely to come into the picture so soon. Overall, EUR has to reclaim 1.0760 to indicate that the immediate downward pressure has eased”.