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In opinion of FX Strategists at UOB Group, the pair’s outlook remains bearish although extra weakness appears unlikely in the near term

Key Quotes

24-hour view: “The rapid reversal in EUR yesterday suggests that a short-term low is in place. However, further strong and sustained advance is not expected from here. EUR is more likely to consolidate its gains and trade sideways to slightly higher. Expected range for today; 1.1625/1.1705″.

Next 1-3 weeks: “EUR moved into a bearish phase when it broke clearly below the 1.1715 support level on 23 May. The subsequent sharp decline hit a multi-month low of 1.1506 on Tuesday (29 May) before staging a robust rebound yesterday. While the outlook is still deemed as bearish, the strong bounce coupled with oversold conditions suggests diminished odds for further EUR weakness. However, only a break of 1.1730 (‘stop-loss’ level) would indicate that a low is in place. In order to revive the current flagging momentum, EUR has to move and stay below 1.1560 within these few days or the risk of a short-term low would increase quickly”.