EUR/USD door open for a test of 1.1916 – UOB

The pair’s near term outlook remains negative and keeps targeting 1.1916, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The 2018 low of 1.1915 was unthreatened as EUR rebounded after touching a low of 1.1944. Downward momentum has eased further and the prospect for further weakness is low. The current movement appears to be part of a consolidation phase and EUR is expected to trade sideways for now, likely between 1.1950 and 1.2035”.

Next 1-3 weeks: “EUR registered an ‘inside day’ yesterday and the recent strong downward momentum has eased somewhat. While we continue to anticipate a move to the year-to-date low at 1.1915, oversold shorter-term condition suggests that EUR could consolidate for a couple of days before embarking on the next ‘down-leg’. From here, 1.1915 is viewed as a rather critical support and a break of this level could lead to an accelerated decline in EUR towards 1.1850 followed by 1.1800. On the upside, the ‘stop-loss’ level remains unchanged at 1.2090 for now (minor resistance is at 1.2035)”.